As the length of the unexpired term of a New Malden domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in New Malden will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in New Malden with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in New Malden can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with New Malden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai owned a conversion apartment in New Malden on the market with a lease of just over 61 years outstanding. Kai on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mrs P González was assigned a lease of a newly refurbished apartment in New Malden in November 2011. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in New Malden with 100 year plus lease were worth £215,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish on 26 November 2088. Given that there were 62 years unexpired we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus legals.
An example of a Lease Extension decision 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 was in relation to 1 flat.