Mitcham Junction leases on domestic deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Mitcham Junction will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Mitcham Junction can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience dealing with Mitcham Junction lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Isaac, started to get close to the 80-year mark with the lease on his studio apartment in Mitcham Junction. In buying his property 18 years previously, the length of the lease was of minimal bearing. Thankfully, he recognised he needed to take action soon on a lease extension. Isaac was able to extend his lease at the eleventh hour last March. Isaac and the freeholder via the management company eventually settled on a premium of £5,000 . If the lease had dipped to less than eighty years, the price would have become more costly by a minimum £1,075.
Last January we were phoned by Mr and Mrs. G Lefèvre , who bought a one bedroom flat in Mitcham Junction in June 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Mitcham Junction with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 18 January 2098. Having 73 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Mitcham Junction flat is 50 & 52 Southcroft Road in September 2013. The tribunals own valuation determined that the premium payable should be £29,000 This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 86.11 and 60.64.