Top reasons for Chessington lease extension

Why you should commence your Chessington lease extension today:

Increase your lease and increase your Chessington property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Chessington. Clearly, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Chessington have the right to extend the lease for an additional 90 years under statute. You should give careful deliberation before putting off your Chessington lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension

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

Leasehold residencies in Chessington with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may decide not to finance a property with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term falls below a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years suitable security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Chessington property.

What makes us experts in Chessington lease extensions?

The lawyers that we work with procure Chessington 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 conveyancer we work with provide it.

Chessington Lease Extension Example Cases:

Eli, Chessington, South West London,

Eli was the the leasehold owner of a high value flat in Chessington on the market with a lease of a little over 61 years left. Eli informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eli to exercise his statutory right. Eli procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Chessington case:

In 2012 we were approached by Mr J Ramírez who, having owned a basement flat in Chessington in February 1998. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Chessington with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected annually. The lease termination date was on 6 August 2080. Given that there were 54 years remaining we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.