Main reasons to commence your Mitcham Junction lease extension

Main reasons to start your Mitcham Junction lease extension today:

A Mitcham Junction lease depreciates with the years remaining on the lease.

As the the remaining lease term of a Mitcham Junction domestic lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Mitcham Junction will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

Mitcham Junction property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Mitcham Junction with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders will not grant a mortgage on a short lease

Mortgage companies will not grant a mortgage on short residential leases. You most probably experience difficulties where you wish to sell your flat in Mitcham Junction if the unexpired lease term is under the criteria set by most banks and building societies. Different mortgage companies have different criteria but on the whole they are looking for a minimum remaining lease term of 65 years.

What makes us experts in Mitcham Junction lease extensions?

Retaining our service gives you better control over the value of your Mitcham Junction leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Mitcham Junction Lease Extension Case Summaries:

Daniel, Mitcham Junction, South London,

Daniel owned a studio apartment in Mitcham Junction being sold with a lease of a little over 61 years remaining. Daniel on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and secured satisfactory resolution informally and readily saleable.

Mitcham Junction case:

Dr Rachael Cooper was assigned a lease of a basement flat in Mitcham Junction in September 1996. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Similar properties in Mitcham Junction with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 invoiced monthly. The lease lapsed in 2094. Having 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.