The only way is down when it comes to Mortlake lease terms. Mortlake flats that have a residual term fewer than 80 years will drop in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold premises in Mortlake with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Mortlake,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mortlake valuers.
Ben owned a conversion flat in Mortlake on the market with a lease of fraction over 72 years outstanding. Ben informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Mr N Brown was assigned a lease of a ground floor flat in Mortlake in September 2006. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparative premises in Mortlake with an extended lease were in the region of £181,600. The average amount of ground rent was £55 billed monthly. The lease concluded in 2077. Given that there were 52 years outstanding we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Mortlake flat is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case affected 3 flats. The number of years remaining on the existing lease(s) was 66.25 years.