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.

Mottingham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Mottingham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Mottingham you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

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

Leasehold premises in Mottingham with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to finance a property on a short lease

Almost all banks and building societies require a lengthy amount of time remaining on any leasehold property before they will contemplate it as adequate security. Even if you don't require a mortgage, you should keep in mind that it is likely that someone wishing to acquire your property in the future might well do, so in the event that they can't get a mortgage, then the market price of the property could be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

Why use us for your lease extension in Mottingham?

Regardless of whether you are a tenant or a landlord in Mottingham,the lease extension lawyers 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:

Finn, Mottingham, South East London,

Finn owned a conversion flat in Mottingham being marketed with a lease of fraction over fifty eight years remaining. Finn on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

Mottingham case:

Last June we were called by Mr Max Moore , who owned a one bedroom flat in Mottingham in June 2012. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Mottingham with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 invoiced monthly. The lease expired on 3 March 2084. Considering the 58 years left we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.