Why you should commence your Mottingham lease extension

Why you should commence your Mottingham lease extension today:

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

Unfortunately that a Mottingham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Mottingham property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Mottingham will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not grant a mortgage on a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are deemed to be insufficient for lending purposes.

Why use us for your lease extension in Mottingham?

Retaining our service will provide you enhanced control over the value of your Mottingham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Mottingham Lease Extension Case Summaries:

Freya, Mottingham, South East London,

Off the back of lengthy correspondence with the freeholder of her garden apartment in Mottingham, Freya commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in June 2015. The freeholder’s charges were negotiated to approximately 600 GBP.

Mottingham case:

In 2012 we were approached by Mr Cameron Young who, having bought a purpose-built flat in Mottingham in July 2002. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Mottingham with a long lease were in the region of £191,400. The average ground rent payable was £55 invoiced per annum. The lease finished in 2080. Taking into account 54 years unexpired we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus expenses.