Why you should commence your Merton Park lease extension

Top reasons for lease extension now:

A Merton Park leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Merton Park. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Merton Park have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give due attention before putting off your Merton Park lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease

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

Leasehold premises in Merton Park with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may not loan monies on a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Merton Park lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure Merton Park 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.

Merton Park Lease Extension Example Cases:

Matthew, Merton Park, South West London,

Matthew was the the leasehold proprietor of a 2 bedroom apartment in Merton Park on the market with a lease of fraction over fifty eight years outstanding. Matthew on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.

Merton Park case:

Last Autumn we were phoned by Dr N Parker , who bought a purpose-built flat in Merton Park in October 2011. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Merton Park with a long lease were valued around £191,400. The mid-range ground rent payable was £55 collected quarterly. The lease ran out on 27 August 2080. Having 54 years outstanding we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of fees.