Main reasons to commence your Chadwell Heath lease extension

Why you should start your Chadwell Heath lease extension today:

Increase your lease and increase your Chadwell Heath property value

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

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not issue a mortgage on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

Regardless of whether you are a tenant or a freeholder in Chadwell Heath,the lease extension solicitors 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 Chadwell Heath valuers.

Chadwell Heath Lease Extension Example Cases:

Joseph, Chadwell Heath, Essex,

Joseph owned a studio apartment in Chadwell Heath on the market with a lease of just over 59 years left. Joseph on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Joseph to exercise his statutory right. Joseph procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.

Chadwell Heath case:

Last year we were approach by Dr Grace Laurent , who acquired a purpose-built flat in Chadwell Heath in November 1999. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar homes in Chadwell Heath with a long lease were in the region of £205,000. The average ground rent payable was £50 billed yearly. The lease concluded on 21 April 2104. Given that there were 78 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.