When it comes to residential leasehold premises in New Malden, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in New Malden with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has under 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in New Malden 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in New Malden,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 New Malden valuers.
After protracted negotiations with the landlord of her one bedroom flat in New Malden, Jennifer commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The lease extension was concluded in August 2014. The freeholder’s costs were restricted to about 500 pounds.
Dr Jamie Girard moved into a one bedroom flat in New Malden in February 2009. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable homes in New Malden with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2102. Considering the 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
An example of a Lease Extension matter before the tribunal for a New Malden premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.