Why you should commence your New Malden lease extension

Why you should commence your New Malden lease extension today:

A New Malden leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in New Malden. Inevitably, the length of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in New Malden have the legal entitlement to extend the lease for an additional 90 years under legislation. Please give careful consideration before putting off your New Malden lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold residencies in New Malden with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to lend on a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to get concerned at around 75 years. This will be problematic when you come to dispose of or refinance your flat as it will be practically unmortgageable. You may have no immediate desire to sell but when you do your buyer will have to hold off for 2 years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our New Malden lease extension solicitors or enfranchisement solicitors

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

New Malden Lease Extension Case Summaries:

Seth, New Malden, South West London

16 months ago Seth, came seriously near to the 80-year mark with the lease on his leasehold flat in New Malden. Having bought his property 18 years ago, the unexpired term was of little importance. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Seth was able to extend his lease just under the wire in July. Seth and the freeholder via the management company eventually agreed on the final figure of £5,500 . If the lease had slipped to less than eighty years, the sum would have escalated by at least £850.

New Malden case:

Last Christmas we were called by Mr and Mrs. O Bertrand , who acquired a basement flat in New Malden in June 1997. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in New Malden with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected yearly. The lease finished in 2096. Taking into account 71 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.