Why you should start your Chipstead lease extension

Main reasons to start your Chipstead lease extension today:

Increase your lease and increase your Chipstead property value

Chipstead leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher premium will be payable. Leasehold owners in Chipstead will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.

Chipstead property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.

Lending institutions may not grant a mortgage on a short lease

Banks and building societies will not grant a mortgage on short residential leases. You most probably experience problems where you need to sell your flat in Chipstead if the remaining term of your lease is under the criteria set by most banks and building societies. Different mortgage companies have varying requirements but in the main theyrequire an unexpired term of at least 65 years.

What makes us experts in Chipstead lease extensions?

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

Chipstead Lease Extension Case Summaries:

Aaron, Chipstead, Surrey,

Aaron owned a high value flat in Chipstead being marketed with a lease of fraction over 61 years remaining. Aaron informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Chipstead case:

Last Autumn we were approach by Mr S Robinson , who acquired a one bedroom apartment in Chipstead in August 1999. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Chipstead with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 collected annually. The lease end date was on 12 September 2100. Considering the 74 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.