When it comes to long leasehold property in Merton Park, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Merton Park with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has under eighty years remaining, under the current Act the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Merton Park with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Merton Park leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her purpose-built apartment in Merton Park, Hannah started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was concluded in November 2005. The freeholder’s charges were restricted to slightly above 550 GBP.
Mrs Millie François purchased a purpose-built flat in Merton Park in June 1999. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable premises in Merton Park with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish on 4 November 2079. Considering the 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus professional charges.
An example of a Lease Extension decision for a Merton Park flat 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 number of years remaining on the existing lease(s) was 62.94 years.