Top reasons for Mitcham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Mitcham property value

Mitcham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Mitcham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Mitcham you really ought to see if your lease has between 70 and 90 years remaining. There are good reasons why a Mitcham leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not finance a property on a short lease

Mortgage companies are really restricting their approach as regards to homes in Mitcham with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus restricting your market.

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

The conveyancers that we work with handle Mitcham 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 conveyancing solicitor we work with provide it.

Mitcham Lease Extension Case Studies:

Dylan, Mitcham, South West London,

Dylan was the the leasehold proprietor of a high value flat in Mitcham on the market with a lease of just over sixty years left. Dylan on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Mitcham case:

In 2011 we were called by Dr Teddy Bonnet who, having bought a purpose-built flat in Mitcham in October 1999. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Identical homes in Mitcham with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 collected annually. The lease expired on 5 July 2097. Taking into account 71 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.