Why you should commence your Mitcham lease extension

Top reasons for lease extension now:

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

The nearer a domestic lease in Mitcham nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Mitcham will qualify for this right; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold properties in Mitcham with over one hundred years unexpired on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may decide not to finance a property with a short lease

Banks and building societies are inclined not lend on short residential leases. You are likely to experience difficulties if you want to sell your flat in Mitcham if the remaining term of your lease is below the criteria set by the majority of mortgage companies. Different lenders have varying criteria but in the main they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Mitcham?

Regardless of whether you are a tenant or a freeholder in Mitcham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mitcham valuers.

Mitcham Lease Extension Example Cases:

Isabella, Mitcham, South West London,

Off the back of unsuccessful correspondence with the landlord of her ground floor flat in Mitcham, Isabella initiated the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction was concluded in April 2005. The freeholder’s fees were restricted to under 650 GBP.

Mitcham case:

Last Summer we were approach by Mr Michael Bennett , who bought a first floor apartment in Mitcham in March 1996. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative premises in Mitcham with a long lease were worth £267,600. The mid-range ground rent payable was £65 collected yearly. The lease ran out in 2093. Taking into account 67 years unexpired we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.