Why you should start your Mitcham lease extension

Main reasons to commence your Mitcham lease extension today:

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

The value of Mitcham 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 escalate substantially once the remaining term is less than eighty years

Mitcham property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders will not lend on a short lease

Mortgage companies are really restricting their approach as regards to properties in Mitcham with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus narrowing the amount of potential buyers.

What makes us experts in Mitcham lease extensions?

Regardless of whether you are a tenant or a freeholder in Mitcham,the lease extension lawyers 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 Mitcham valuers.

Mitcham Lease Extension Case Summaries:

Owen, Mitcham, South West London,

Owen was the the leasehold proprietor of a conversion flat in Mitcham on the market with a lease of fraction over sixty years remaining. Owen informally spoke with 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 new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.

Mitcham case:

Last Christmas we were contacted by Mr Lewis Adams , who acquired a garden flat in Mitcham in March 2001. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical homes in Mitcham with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 collected every twelve months. The lease ran out on 25 May 2081. Given that there were 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus legals.