Top reasons for Merton Park lease extension

Why you should commence your Merton Park lease extension today:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Merton Park. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Merton Park have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Merton Park lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension

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

It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may not grant a mortgage on a short lease

Most mortgage lenders will be unwilling to grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will likely find it difficult to obtain a mortgage and this will result in your Merton Park property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Merton Park lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle Merton Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Merton Park Lease Extension Case Studies:

Catherine, Merton Park, South West London,

Subsequent to unsuccessful correspondence with the freeholder of her leasehold apartment in Merton Park, Catherine commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was finalised in August 2015. The freeholder’s costs were kept to an absolute minimum.

Merton Park case:

In 2009 we were phoned by Mr H Díaz who, having purchased a one bedroom flat in Merton Park in September 2004. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical properties in Merton Park with an extended lease were in the region of £240,600. The average amount of ground rent was £60 collected monthly. The lease finished on 15 October 2088. Considering the 62 years unexpired we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.