Merton Park leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be due. Leasehold owners in Merton Park will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Merton Park,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 Merton Park valuers.
Last October Finley, started to get close to the eighty-year mark with the lease on his garden flat in Merton Park. In buying his home two decades ago, the length of the lease was of no significance. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Finley arranged for a lease extension just ahead of time last August. Finley and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he failed to meet the deadline, the figure would have increased by a minimum £850.
Last Spring we were e-mailed by Mr and Mrs. O Petit , who bought a purpose-built apartment in Merton Park in September 2011. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Merton Park with an extended lease were valued about £250,400. The average amount of ground rent was £65 invoiced quarterly. The lease ended on 21 January 2090. Considering the 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Merton Park flat is 14 Nutwell Street in January 2014. The premium payable for the acquisition of a new lease of the subject premises was in the sum of £30,523 This case was in relation to 1 flat. The remaining number of years on the lease was 62.94 years.