Merton Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Merton Park residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Merton Park you should investigate if your lease has between 70 and 90 years left. There are good reasons why a Merton Park flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Merton Park,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 Merton Park valuers.
Luca owned a conversion apartment in Merton Park on the market with a lease of a few days over fifty eight years outstanding. Luca informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Dr H Hall , who took over the lease of a basement apartment in Merton Park in September 2002. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable premises in Merton Park with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out on 1 June 2099. Considering the 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension decision 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 unexpired lease term was 62.94 years.