Top reasons for Mitcham lease extension

Why you should start your Mitcham lease extension today:

Increase your lease and increase your Mitcham property value

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 significantly once the unexpired lease term is below than 80 years

An extended lease has roughly the same value as a freehold

Leasehold premises in Mitcham with more than one hundred years left on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not issue a mortgage on a short lease

Lenders are really restricting their approach as regards to homes in Mitcham with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of prospective buyers.

Get in touch with one of our Mitcham lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Mitcham,the lease extension experts that we work with will always be willing 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:

Ibrahim, Mitcham, South West London,

Ibrahim owned a 2 bedroom flat in Mitcham being sold with a lease of just over 61 years left. Ibrahim informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.

Mitcham case:

Last month we were phoned by Dr C Martínez , who acquired a basement apartment in Mitcham in June 1996. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Mitcham with an extended lease were in the region of £243,000. The average ground rent payable was £65 invoiced yearly. The lease expired in 2088. Having 63 years remaining we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.