Top reasons for New Malden lease extension

Top reasons for lease extension now:

Increase your lease and increase your New Malden property value

New Malden leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in New Malden will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lending institutions may not grant a mortgage with a short lease

Lending institutions have set criteria when loaning monies charged on leasehold homes. Some will simply not lend at all once the residual lease term goes below a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than 75 years as adequate security. As well as impacting your ability to sell, it is also relevant where you are wanting to remortgage your New Malden property.

What makes us experts in New Malden lease extensions?

Irrespective of whether you are a tenant or a freeholder in New Malden,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with New Malden valuers.

New Malden Lease Extension Example Cases:

Tyler, New Malden, South West London,

Tyler owned a studio apartment in New Malden on the market with a lease of a little over 59 years outstanding. Tyler informally approached his freeholder being 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 rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Tyler to exercise his statutory right. Tyler procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

New Malden case:

Mr and Mrs. W Michel was assigned a lease of a one bedroom flat in New Malden in April 2007. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable premises in New Malden with an extended lease were valued around £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 18 June 2079. Considering the 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including costs.