Merton Park leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Merton Park will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Merton Park with over 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Merton Park can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Merton Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael was the the leasehold owner of a studio flat in Merton Park being sold with a lease of a little over sixty years unexpired. Michael on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Michael to exercise his statutory right. Michael procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr Lucas Adams took over the lease of a first floor flat in Merton Park in October 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical properties in Merton Park with a long lease were valued around £295,000. The average amount of ground rent was £45 billed monthly. The lease ran out on 16 May 2099. Given that there were 74 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension decision for a Merton Park residence 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 related to 1 flat. The unexpired term was 62.94 years.