Why you should commence your New Malden lease extension

Top reasons for lease extension now:

A New Malden leasehold property depreciates with the years remaining on the lease.

New Malden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying New Malden residential leaseholders to extend the terms of long leases. If you are a leasehold owner in New Malden you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

New Malden property with a lease extension is almost the same value as a freehold

Leasehold residencies in New Malden with in excess of 100 years unexpired 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may decide not to finance a property on a short lease

Most high street banks are making their criteria more stringent and many now want flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. Given that a number of flats in New Malden were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

What makes us experts in New Malden lease extensions?

Lease extensions in New Malden can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 New Malden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

New Malden Lease Extension Case Summaries:

Arthur, New Malden, South West London

16 months ago Arthur, came very close to the 80-year mark with the lease on his one bedroom apartment in New Malden. In buying his property twenty years previously, the length of the lease was of no importance. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Arthur extended the lease just ahead of time last September. Arthur and the landlord ultimately agreed on a premium of £5,000 . If the lease had gone lower than eighty years, the amount would have increased by at least £1,100.

New Malden case:

Ms Zoe Murphy bought a studio flat in New Malden in January 2011. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical homes in New Malden with an extended lease were worth £290,000. The average ground rent payable was £60 collected monthly. The lease lapsed on 2 September 2106. Taking into account 80 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.