With a long leasehold premises in Merton Park, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Leasehold owners in Merton Park with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Merton Park with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Merton Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Merton Park valuers.
Subsequent to lengthy negotiations with the freeholder of her basement apartment in Merton Park, Abigail started the lease extension process as the eighty year mark was swiftly approaching. The transaction was concluded in March 2014. The landlord’s charges were kept to an absolute minimum.
Last year we were phoned by Dr Katie Petit , who purchased a one bedroom apartment in Merton Park in September 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar flats in Merton Park with an extended lease were in the region of £205,000. The average amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2105. Considering the 79 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
An example of a Lease Extension case for a Merton Park premises 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 affected 1 flat. The number of years remaining on the existing lease(s) was 62.94 years.