There is no doubt about it a leasehold flat or house in Merton Park is a wasting asset as a result of the diminishing lease term. If the lease has, over 100 years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Merton Park will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Using our service gives you increased 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold owner of a conversion flat in Merton Park being marketed with a lease of fraction over fifty eight years left. Luke on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2012 we were called by Dr James Howard who, having owned a studio apartment in Merton Park in April 1996. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical properties in Merton Park with 100 year plus lease were valued around £243,000. The mid-range amount of ground rent was £65 collected annually. The lease elapsed in 2088. Having 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.
An example of a Lease Extension case for a Merton Park residence 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 related to 1 flat. The unexpired term was 62.94 years.