Why you should commence your Chalk Farm lease extension

Top reasons for lease extension now:

Increase your lease and increase your Chalk Farm property value

The value of Chalk Farm leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is below than eighty years

An extended lease is almost the same value as a freehold

Leasehold residencies in Chalk Farm with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders will not lend on a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - routinely 50 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 Chalk Farm lease extension solicitors or enfranchisement solicitors

Lease extensions in Chalk Farm can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.

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 in-depth market knowledge dealing with Chalk Farm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Chalk Farm Lease Extension Case Summaries:

Jason, Chalk Farm, North London,

Jason was the the leasehold owner of a conversion apartment in Chalk Farm on the market with a lease of a little over 72 years left. Jason on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.

Chalk Farm case:

In 2014 we were e-mailed by Mr Jacob Martin who, having bought a one bedroom apartment in Chalk Farm in November 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical premises in Chalk Farm with a long lease were in the region of £240,600. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2087. Considering the 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.