The market value of a leasehold property in New Malden is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed well before the 80 year threshold. Current legislation entitles New Malden qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your New Malden leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her studio apartment in New Malden, Alicia started the lease extension process just as the lease was nearing the critical 80-year deadline. The lease extension was finalised in June 2013. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. A Edwards moved into a basement flat in New Malden in June 1998. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar premises in New Malden with a long lease were worth £285,000. The average ground rent payable was £55 invoiced yearly. The lease finished on 28 July 2104. Given that there were 80 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
An example of a Lease Extension decision for a New Malden flat 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.