Why you should commence your Chessington lease extension

Top reasons for lease extension now:

A Chessington leasehold property depreciates with the years remaining on the lease.

Chessington leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Chessington will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some situations you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Chessington with in excess of one hundred years outstanding 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

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

Most mortgage companies will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies from lender to lender. A purchaser will likely encounter difficulties to obtain a mortgage and this will result in your Chessington property becoming difficult to dispose of or to obtain finance on.

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

Irrespective of whether you are a tenant or a landlord in Chessington,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chessington valuers.

Chessington Lease Extension Case Summaries:

Owen, Chessington, South West London,

Owen was the the leasehold owner of a conversion apartment in Chessington on the market with a lease of just over sixty years unexpired. Owen informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and secured an acceptable resolution informally and readily saleable.

Chessington case:

Last year we were called by Dr T López , who owned a studio apartment in Chessington in May 2008. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Chessington with an extended lease were valued around £261,600. The average ground rent payable was £60 billed quarterly. The lease concluded on 5 March 2078. Given that there were 52 years remaining we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including expenses.