Why you should commence your Mitcham lease extension

Main reasons to start your Mitcham lease extension today:

A Mitcham leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in Mitcham, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Mitcham with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has below 80 years remaining, under the current Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Mitcham with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies will not issue a mortgage with a short lease

Lending institutions have set criteria when lending funds charged on leasehold homes. Some will simply not lend at all once the remaining lease term goes beneath a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below 75 years suitable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Mitcham property.

Why use us for your lease extension in Mitcham?

Regardless of whether you are a tenant or a freeholder in Mitcham,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 in-depth market knowledge and the close ties they enjoy with Mitcham valuers.

Mitcham Lease Extension Case Summaries:

Austin, Mitcham, South West London,

Austin owned a conversion flat in Mitcham on the market with a lease of just over sixty years left. Austin informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured satisfactory resolution informally and sell the property.

Mitcham case:

Mr Harry Rodríguez was assigned a lease of a newly refurbished flat in Mitcham in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Mitcham with a long lease were worth £243,000. The average ground rent payable was £65 invoiced yearly. The lease concluded in 2089. Given that there were 63 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.