Top reasons for Chiswick lease extension

Why you should start your Chiswick lease extension today:

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

Chiswick leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Chiswick residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Chiswick you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Chiswick with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not finance a property on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Chiswick lease extensions?

Engaging our service gives you increased control over the value of your Chiswick leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chiswick Lease Extension Case Summaries:

Nathan, Chiswick, West London

Last Winter Nathan, started to get near to the 80-year mark with the lease on his two bedroom flat in Chiswick. In buying his home two decades ago, the length of the lease was of no bearing. Luckily, he became aware that he would imminently be paying an escalated premium for Extending the lease. Nathan extended the lease just ahead of time last April. Nathan and the freeholder in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,000.

Chiswick case:

Last Winter we were e-mailed by Mr and Mrs. J Green , who owned a one bedroom flat in Chiswick in September 1997. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical homes in Chiswick with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 26 May 2092. Having 66 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.