Top reasons for Chipping Norton lease extension

Top reasons for lease extension now:

A Chipping Norton lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Chipping Norton is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that formalities can be finalised prior to the eighty year cut off point. Current legislation enables Chipping Norton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Chipping Norton property with a lease extension has roughly the same value as a freehold

Leasehold properties in Chipping Norton with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to finance a property on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Chipping Norton?

Regardless of whether you are a tenant or a landlord in Chipping Norton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chipping Norton valuers.

Chipping Norton Lease Extension Example Cases:

Seth, Chipping Norton, Oxfordshire,

Seth owned a high value flat in Chipping Norton being sold with a lease of fraction over 61 years left. Seth on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.

Chipping Norton case:

In 2013 we were approached by Dr Joseph Lefèvre who, having moved into a first floor apartment in Chipping Norton in January 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Chipping Norton with an extended lease were worth £250,000. The average ground rent payable was £50 billed yearly. The lease came to a finish in 2096. Considering the 70 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.

Chipping Norton case:

Last Autumn we were phoned by Dr Lucy Torres , who acquired a basement apartment in Chipping Norton in February 2012. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Chipping Norton with an extended lease were valued around £246,800. The average amount of ground rent was £60 billed monthly. The lease expired on 18 March 2076. Taking into account 50 years remaining we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.