Main reasons to commence your Malden Rushett lease extension

Top reasons for lease extension now:

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

As the length of the unexpired term of a Malden Rushett residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. The majority of flat owners in Malden Rushett will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Malden Rushett with in excess of 100 years left on the lease are often 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 purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not finance a property on a short lease

Lenders are really restricting their approach as regards to homes in Malden Rushett with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. 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 reducing your market.

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

The conveyancers that we work with handle Malden Rushett lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Malden Rushett Lease Extension Case Studies:

Jacob, Malden Rushett, South West London,

Jacob owned a high value flat in Malden Rushett being marketed with a lease of just over 59 years left. Jacob on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jacob to exercise his statutory right. Jacob procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.

Malden Rushett case:

Last May we were called by Dr N Cooper , who completed a one bedroom flat in Malden Rushett in March 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Malden Rushett with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired in 2100. Considering the 74 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.