Why you should start your Motspur Park lease extension

Top reasons for lease extension now:

A Motspur Park leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Motspur Park residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Motspur Park property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under 80 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. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Motspur Park will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not finance a property on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Motspur Park?

Engaging our service will provide you better control over the value of your Motspur Park leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Motspur Park Lease Extension Case Studies:

Sam, Motspur Park, South West London,

Sam was the the leasehold proprietor of a studio flat in Motspur Park being sold with a lease of a few days over fifty eight years remaining. Sam on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam obtained expert advice and secured satisfactory deal informally and sell the flat.

Motspur Park case:

Last August we were contacted by Dr Jodie Michel , who bought a one bedroom apartment in Motspur Park in March 2008. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparative properties in Motspur Park with a long lease were valued about £225,800. The average amount of ground rent was £60 billed every twelve months. The lease came to a finish in 2085. Taking into account 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 exclusive of expenses.