Merton Park residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Merton Park with more than 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Merton Park can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience dealing with 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.
After unsuccessful negotiations with the landlord of her two bedroom apartment in Merton Park, Isabella started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work completed in March 2005. The landlord’s charges were restricted to slightly above 650 pounds.
Last Christmas we were e-mailed by Mr and Mrs. L Vincent , who moved into a ground floor apartment in Merton Park in June 2009. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Merton Park with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 billed per annum. The lease lapsed in 2098. Having 72 years unexpired we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.
An example of a Lease Extension decision for a Merton Park property 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.