Main reasons to commence your Chippenham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Chippenham property value

Chippenham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Chippenham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Chippenham you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Chippenham with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not issue a mortgage on a short lease

Many banks and building societies will be unwilling to lend on a lease with less than 70 years unexpired - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Chippenham property being difficult to dispose of or remortgage.

What makes us experts in Chippenham lease extensions?

Retaining our service gives you increased control over the value of your Chippenham leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Chippenham Lease Extension Example Cases:

Melissa, Chippenham, Wiltshire,

In the wake of eight months of protracted correspondence with the landlord of her leasehold flat in Chippenham, Melissa commenced the lease extension process as the eighty year deadline was rapidly approaching. The transaction was concluded in August 2011. The landlord’s fees were negotiated to slightly above 450 GBP.

Chippenham case:

In 2013 we were phoned by Dr Rachel Baker who, having bought a basement flat in Chippenham in March 1995. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable residencies in Chippenham with a long lease were valued around £275,000. The average amount of ground rent was £55 invoiced yearly. The lease elapsed in 2102. Having 76 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.

Chippenham case:

Last Autumn we were phoned by Ms Georgia Gunderson , who was assigned a lease of a purpose-built flat in Chippenham in August 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Chippenham with 100 year plus lease were in the region of £181,200. The average amount of ground rent was £65 collected per annum. The lease expired on 5 May 2082. Considering the 56 years as a residual term we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 not including legals.