Mitcham Junction leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Leasehold owners in Mitcham Junction will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Mitcham Junction with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Retaining our service will provide you better control over the value of your Mitcham Junction leasehold, as your property will be more valuable and saleable 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.
Eli was the the leasehold proprietor of a high value apartment in Mitcham Junction on the market with a lease of a few days over 61 years remaining. Eli informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Mr Finley Davies moved into a basement apartment in Mitcham Junction in March 2012. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical residencies in Mitcham Junction with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £55 billed quarterly. The lease elapsed in 2082. Taking into account 56 years outstanding we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Mitcham Junction residence is 50 & 52 Southcroft Road in September 2013. The tribunals own valuation determined that the premium payable should be £29,000 This case affected 2 flats. The unexpired residue of the current lease was 86.11 and 60.64.