Main reasons to start your Mitcham lease extension

Main reasons to start your Mitcham lease extension today:

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

Unfortunately that a Mitcham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Mitcham property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Mitcham will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Mitcham with in excess of 100 years outstanding 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may decide not to loan monies with a short lease

Many banks and building societies will not grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Mitcham property being difficult to dispose of or to obtain finance on.

Why use us for your lease extension in Mitcham?

Lease extensions in Mitcham can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Mitcham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Mitcham Lease Extension Example Cases:

Omar, Mitcham, South West London,

Omar was the the leasehold owner of a studio apartment in Mitcham being marketed with a lease of a little over sixty years remaining. Omar on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

Mitcham case:

In 2011 we were called by Ms Stephanie Dupont who, having bought a one bedroom flat in Mitcham in October 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Mitcham with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 invoiced every twelve months. The lease end date was in 2077. Taking into account 51 years outstanding we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.