Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Mitcham Junction. Inevitably, the period of lease left reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Mitcham Junction have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give due deliberation before delaying your Mitcham Junction lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Mitcham Junction 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 conveyancer we work with provide it.
Trailing lengthy discussions with the freeholder of her basement apartment in Mitcham Junction, Erin commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was finalised in November 2008. The landlord’s charges were restricted to below 650 GBP.
Last Autumn we were contacted by Mrs Mollie Howard , who completed a first floor flat in Mitcham Junction in May 2005. The question was if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Mitcham Junction with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 billed per annum. The lease termination date was in 2089. Given that there were 63 years left we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Mitcham Junction premises is 50 & 52 Southcroft Road in September 2013. The tribunals own valuation determined that the premium payable should be £29,000 This case related to 2 flats. The unexpired residue of the current lease was 86.11 and 60.64.