Main reasons to start your Mottingham lease extension

Top reasons for lease extension now:

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

The closer a domestic lease in Mottingham nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Mottingham will meet the qualifying criteria; however a conveyancer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Mottingham property with a lease extension is almost the same value as a freehold

It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not issue a mortgage with a short lease

Mortgage lenders have specific criteria when loaning monies charged on leasehold property. Some will simply not lend at all once an unexpired lease term falls under a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant if you are wanting to remortgage your Mottingham property.

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

Regardless of whether you are a tenant or a landlord in Mottingham,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 Mottingham valuers.

Mottingham Lease Extension Case Studies:

Dylan, Mottingham, South East London,

Dylan owned a 2 bedroom flat in Mottingham being marketed with a lease of a little over sixty years remaining. Dylan on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Dylan to invoke his statutory right. Dylan procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.

Mottingham case:

In 2011 we were e-mailed by Dr Olivia Cook who, having owned a first floor flat in Mottingham in August 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Mottingham with an extended lease were worth £171,800. The mid-range ground rent payable was £55 billed quarterly. The lease ran out in 2076. Taking into account 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus expenses.