Main reasons to commence your Morden lease extension

Top reasons for lease extension now:

Increase your lease and increase your Morden property value

Morden leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be due. Flat owners in Morden will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.

Morden property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to grant a mortgage on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Morden?

Regardless of whether you are a tenant or a freeholder in Morden,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Morden valuers.

Morden Lease Extension Example Cases:

Milo, Morden, South West London,

Milo owned a conversion apartment in Morden on the market with a lease of a little over 72 years outstanding. Milo informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Morden case:

In 2014 we were called by Mr H Morel who, having purchased a basement apartment in Morden in February 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Morden with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 invoiced annually. The lease termination date was on 4 July 2106. Considering the 80 years outstanding we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.