Top reasons for Morden lease extension

Main reasons to start your Morden lease extension today:

A Morden lease depreciates with the years remaining on the lease.

With a domestic leasehold property in Morden, 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 think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Morden with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has below eighty years left, under the relevant Act the landlord can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Morden property with a lease extension is almost the same value as a freehold

Leasehold premises in Morden with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are regarded as unacceptable security.

What makes us experts in Morden lease extensions?

The lawyers that we work with undertake Morden 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.

Morden Lease Extension Example Cases:

Hunter, Morden, South West London,

Hunter owned a studio flat in Morden on the market with a lease of just over 61 years outstanding. Hunter informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.

Morden case:

Dr Alice Pérez completed a newly refurbished apartment in Morden in January 1997. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable properties in Morden with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed quarterly. The lease ran out on 6 January 2105. Considering the 80 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.