Top reasons for Mitcham Junction lease extension

Main reasons to start your Mitcham Junction lease extension today:

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

As the the remaining lease term of a Mitcham Junction residential lease lessens so does its value and therefore the value of your property. If the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Mitcham Junction will qualify for this right; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

Mitcham Junction property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend on a short lease

Lenders do not like short residential leases. You most probably experience difficulties if you need to sell your flat in Mitcham Junction if the remaining lease term is below the criteria set by most lenders. Different lenders have different criteria but in the main they are looking for a minimum remaining lease term of 65 years.

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

Irrespective of whether you are a tenant or a freeholder in Mitcham Junction,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mitcham Junction valuers.

Mitcham Junction Lease Extension Case Summaries:

Jake, Mitcham Junction, South London

Two years ago Jake, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Mitcham Junction. In buying his home two decades ago, the length of the lease was of little significance. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Jake extended the lease at the eleventh hour last June. Jake and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If the lease had dipped to less than 80 years, the price would have escalated by at least £1,150.

Mitcham Junction case:

In 2013 we were approached by Ms Amelia Cooper who, having was assigned a lease of a garden flat in Mitcham Junction in August 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Mitcham Junction with a long lease were worth £210,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded in 2106. Taking into account 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.