Main reasons to commence your Merton Park lease extension

Main reasons to start your Merton Park lease extension today:

Increase your lease and increase your Merton Park property value

When it comes to long leasehold premises in Merton Park, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years remaining. Anyone in Merton Park with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years left, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.

Merton Park property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.

Lending institutions will not loan monies with a short lease

Mortgage lenders have specific criteria when lending monies secured on leasehold homes. Many will simply refrain from lending at all once the residual lease term falls lower than a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than 75 years as acceptable security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Merton Park home.

What makes us experts in Merton Park lease extensions?

Irrespective of whether you are a tenant or a freeholder in Merton Park,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 experience and the close ties they enjoy with Merton Park valuers.

Merton Park Lease Extension Case Studies:

Ben, Merton Park, South West London

During the course of the last few months Ben, started to get close to the eighty-year mark with the lease on his one bedroom flat in Merton Park. Having purchased his flat twenty years previously, the length of the lease was of little importance. Fortunately, he realised he needed to take steps soon on a lease extension. Ben arranged for a lease extension at the eleventh hour last June. Ben and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had dipped to less than 80 years, the sum would have escalated by a minimum £1,125.

Merton Park case:

Dr Harry André acquired a basement flat in Merton Park in February 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative flats in Merton Park with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 collected every twelve months. The lease termination date was in 2103. Having 77 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.