Main reasons to start your Chessington lease extension

Top reasons for lease extension now:

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

It’s a harsh truth that a Chessington residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Chessington property market.Where your lease has approximately ninety years left, you need to start thinking about 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 falls under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Chessington will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Chessington with more than one hundred years unexpired 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lending institutions will not issue a mortgage on a short lease

Almost all mortgage lenders will be unwilling to lend on a lease with under seventy years remaining - although this varies from lender to lender. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Chessington property being difficult to sell or to obtain finance on.

What makes us experts in Chessington lease extensions?

Retaining our service gives you better control over the value of your Chessington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chessington Lease Extension Case Summaries:

Luke, Chessington, South West London,

Luke owned a studio apartment in Chessington on the market with a lease of a little over sixty years outstanding. Luke on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and was able to make an informed decision and deal with the matter and sell the property.

Chessington case:

In 2011 we were contacted by Mr and Mrs. E Roux who, having acquired a garden flat in Chessington in October 1996. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative homes in Chessington with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish on 13 June 2101. Considering the 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.