Main reasons to commence your Mitcham lease extension

Top reasons for lease extension now:

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

Mitcham leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Mitcham will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Mitcham with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not lend on a short lease

Mortgage companies are inclined not grant a mortgage on short residential leases. You most probably experience difficulties if you need to sell your flat in Mitcham if the unexpired term of your lease is under the criteria set by most lenders. Different lenders have varying criteria but on the whole theyrequire an unexpired term of at least 65 years.

What makes us experts in Mitcham lease extensions?

Engaging our service will provide you better control over the value of your Mitcham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Mitcham Lease Extension Example Cases:

Oscar, Mitcham, South West London

Two years ago Oscar, came perilously near to the 80-year threshold with the lease on his two bedroom apartment in Mitcham. In buying his home two decades ago, the lease term was of no concern. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Oscar was able to extend his lease at the eleventh hour last March. Oscar and the freeholder via the management company subsequently agreed on a premium of £5,000 . If the lease had fallen below 80 years, the sum would have escalated by a minimum £1,075.

Mitcham case:

Last Winter we were called by Ms Isobel Sánchez , who acquired a one bedroom flat in Mitcham in February 2003. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Identical flats in Mitcham with a long lease were worth £233,200. The average amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 11 September 2086. Taking into account 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus fees.