Why you should commence your Mortlake lease extension

Why you should start your Mortlake lease extension today:

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

Mortlake leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Mortlake enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Mortlake you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions will not loan monies with a short lease

Most banks and building societies will not grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Mortlake property being difficult to dispose of or to obtain finance on.

What makes us experts in Mortlake lease extensions?

Irrespective of whether you are a tenant or a landlord in Mortlake,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mortlake valuers.

Mortlake Lease Extension Case Studies:

Jacob, Mortlake, South West London

In 2014 Jacob, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Mortlake. Having purchased his home two decades ago, the lease term was of little importance. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Jacob extended the lease just in the nick of time last January. Jacob and the landlord ultimately agreed on an amount of £5,000 . If the lease had slipped lower than eighty years, the figure would have gone up by a minimum £950.

Mortlake case:

Dr V Jones took over the lease of a garden flat in Mortlake in January 2012. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Mortlake with a long lease were valued around £275,000. The average amount of ground rent was £65 billed yearly. The lease ran out on 18 October 2094. Taking into account 68 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.