Why you should commence your Chorleywood lease extension

Top reasons for lease extension now:

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

Chorleywood leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Chorleywood tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Chorleywood you should investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Chorleywood leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay

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

Leasehold properties in Chorleywood with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Lenders will not lend on a short lease

Most banks have tightened lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are considered to be unacceptable for lending purposes.

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

Lease extensions in Chorleywood can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chorleywood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Chorleywood Lease Extension Example Cases:

Harriet, Chorleywood, Hertfordshire,

In the wake of 6 months of lengthy discussions with the freeholder of her first floor apartment in Chorleywood, Harriet started the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in March 2014. The landlord’s costs were negotiated to about 550 GBP.

Chorleywood case:

Mr Elijah Cox owned a basement flat in Chorleywood in March 1997. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Chorleywood with an extended lease were in the region of £210,600. The average amount of ground rent was £45 billed annually. The lease expiry date was on 1 April 2088. Having 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.