Why you should commence your Chadwell Heath lease extension

Top reasons for lease extension now:

Increase your lease and increase your Chadwell Heath property value

It’s an underpublicised truth that a Chadwell Heath residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Chadwell Heath property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. Most flat owners in Chadwell Heath will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.

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

Leasehold properties in Chadwell Heath with more than one hundred years left 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not grant a mortgage with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Chadwell Heath lease extensions?

The lawyers that we work with procure Chadwell Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Chadwell Heath Lease Extension Example Cases:

Sebastian, Chadwell Heath, Essex

During the course of the last few months Sebastian, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Chadwell Heath. Having bought his property 18 years ago, the unexpired term was of no significance. As luck would have it, he realised he needed to take action soon on Extending the lease. Sebastian was able to extend his lease just in the nick of time last May. Sebastian and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If he not met the deadline, the price would have gone up by at least £975.

Chadwell Heath case:

Last month we were approach by Dr Ella Flores , who completed a first floor flat in Chadwell Heath in January 2007. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical properties in Chadwell Heath with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced monthly. The lease came to a finish on 15 June 2098. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of legals.