Merton Park leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher premium will be payable. Leasehold owners in Merton Park will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Merton Park with over one hundred years unexpired on the lease are often referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Merton Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted discussions with the landlord of her one bedroom flat in Merton Park, Chloe commenced the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was finalised in February 2014. The landlord’s charges were negotiated to less than 700 GBP.
Last Autumn we were e-mailed by Mr and Mrs. W Kelly , who completed a purpose-built flat in Merton Park in April 1995. The question was if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Merton Park with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed monthly. The lease came to a finish on 16 November 2076. Considering the 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired residue of the current lease was 62.94 years.