Why you should commence your Malden lease extension

Top reasons for lease extension now:

A Malden lease depreciates with the years remaining on the lease.

Malden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Malden tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Malden you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Malden with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions will not lend on a short lease

The propensity since 2008 has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

Engaging our service gives you better control over the value of your Malden leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Malden Lease Extension Example Cases:

Muhammad, Malden, South West London

16 months ago Muhammad, came very close to the eighty-year mark with the lease on his studio apartment in Malden. In buying his flat two decades ago, the lease term was of no significance. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Muhammad extended the lease at the eleventh hour in September. Muhammad and the landlord subsequently agreed on an amount of £5,000 . If the lease had dropped below eighty years, the price would have become more costly by a minimum £1,050.

Malden case:

In 2012 we were phoned by Dr Zachary Wright who, having acquired a newly refurbished flat in Malden in April 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Malden with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 22 August 2103. Taking into account 77 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.