Top reasons for Malden Rushett lease extension

Main reasons to commence your Malden Rushett lease extension today:

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

With a domestic leasehold property in Malden Rushett, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Leasehold owners in Malden Rushett with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years left, under the current legislation the landlord can calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.

Malden Rushett property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may not loan monies with a short lease

The propensity since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Retaining our service will provide you increased control over the value of your Malden Rushett leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Malden Rushett Lease Extension Case Summaries:

Elijah, Malden Rushett, South West London,

Elijah owned a conversion flat in Malden Rushett on the market with a lease of a few days over 59 years remaining. Elijah informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.

Malden Rushett case:

In 2010 we were called by Ms Kate Robinson who, having moved into a recently refurbished flat in Malden Rushett in June 2004. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Malden Rushett with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 billed annually. The lease expired on 2 July 2103. Having 77 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.