Why you should start your Mottingham lease extension

Why you should commence your Mottingham lease extension today:

Increase your lease and increase your Mottingham property value

When it comes to domestic leasehold property in Mottingham, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Leasehold owners in Mottingham with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When a lease has less than eighty years outstanding, under the relevant statute the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold properties in Mottingham with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may decide not to lend on a short lease

Mortgage companies are really restricting their approach as regards to homes in Mottingham with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus reducing the amount of prospective buyers.

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

Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Mottingham valuers.

Mottingham Lease Extension Example Cases:

Aaron, Mottingham, South East London

Last Christmas Aaron, started to get near to the 80-year threshold with the lease on his ground floor apartment in Mottingham. Having purchased his flat 19 years previously, the unexpired term was of no importance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Aaron was able to extend his lease just ahead of time last September. Aaron and the freeholder via the managing agents ultimately agreed on a premium of £5,500 . If the lease had dipped lower than 80 years, the amount would have become more costly by a minimum £950.

Mottingham case:

In 2009 we were approached by Mr and Mrs. D Evans who, having acquired a studio apartment in Mottingham in June 2005. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar properties in Mottingham with a long lease were in the region of £290,000. The average ground rent payable was £45 billed yearly. The lease lapsed on 22 September 2099. Given that there were 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.