New Malden leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher premium will be due. Flat owners in New Malden will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in New Malden,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Malden valuers.
In 2014 Archie, came dangerously near to the 80-year mark with the lease on his leasehold apartment in New Malden. Having bought his home two decades ago, the unexpired term was of little relevance. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Archie extended the lease just under the wire last March. Archie and the freeholder via the management company eventually agreed on an amount of £5,500 . If he not met the deadline, the sum would have become more costly by at least £1,125.
In 2011 we were called by Mr D Sánchez who, having purchased a ground floor apartment in New Malden in September 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar properties in New Malden with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed annually. The lease ended on 2 July 2103. Taking into account 78 years left we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
An example of a Lease Extension case for a New Malden property 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.