Why you should start your Cholsey lease extension

Main reasons to start your Cholsey lease extension today:

A Cholsey lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold property in Cholsey, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Anyone in Cholsey with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has under eighty years outstanding, under the current legislation the freeholder can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders will not issue a mortgage on a short lease

Many banks and building societies will not grant a mortgage on a lease with under seventy years remaining - although this varies from lender to lender. A buyer will no doubt encounter difficulties in obtaining a mortgage and this will result in your Cholsey property becoming difficult to sell or to obtain finance on.

Get in touch with one of our Cholsey lease extension solicitors or enfranchisement solicitors

Engaging our service gives you enhanced control over the value of your Cholsey leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Cholsey Lease Extension Case Summaries:

Jack, Cholsey, Oxfordshire

In 2014 Jack, came very close to the 80-year mark with the lease on his first floor flat in Cholsey. In buying his home 18 years ago, the unexpired term was of little interest. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Jack was able to extend his lease just under the wire last May. Jack and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If the lease had fallen below 80 years, the premium would have escalated by a minimum £1,125.

Cholsey case:

Ms Paige Roberts completed a first floor apartment in Cholsey in January 2007. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable flats in Cholsey with an extended lease were in the region of £265,000. The average amount of ground rent was £50 collected annually. The lease terminated on 20 July 2100. Having 74 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Cholsey case:

Last month we were contacted by Mrs K Lewis , who purchased a garden flat in Cholsey in January 2010. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Identical residencies in Cholsey with a long lease were worth £166,400. The average amount of ground rent was £60 billed annually. The lease expired on 17 August 2080. Taking into account 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus fees.