Top reasons for Morden lease extension

Top reasons for lease extension now:

Increase your lease and increase your Morden property value

It’s a harsh truth that a Morden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Morden property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Morden will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Most high street banks are making their criteria more stringent and many now want flats to have at least sixty if not seventy years left at the expiry of the mortgage. Considering a number of flats in Morden were created in the 1950s, 1960s and 1970s as a result many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Morden lease extensions?

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

Morden Lease Extension Case Studies:

Finley, Morden, South West London

In recent months Finley, came seriously near to the 80-year mark with the lease on his one bedroom apartment in Morden. In buying his property 19 years previously, the lease term was of little relevance. Fortunately, he noticed he needed to take action soon on Extending the lease. Finley arranged for a lease extension just ahead of time last April. Finley and the freeholder eventually agreed on the final figure of £6,000 . If the lease had slid to less than eighty years, the price would have gone up by at least £850.

Morden case:

Last Christmas we were e-mailed by Mr and Mrs. P Cook , who completed a basement apartment in Morden in June 1995. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative premises in Morden with a long lease were in the region of £290,000. The average amount of ground rent was £45 invoiced monthly. The lease terminated in 2098. Considering the 72 years left we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.