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Top reasons for Morden lease extension

Top reasons for lease extension now:

A Morden leasehold property depreciates with the years remaining on the lease.

The market value of Morden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years

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

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.

Lending institutions will not grant a mortgage on a short lease

Banks and Building Societies have set criteria when lending monies secured on leasehold homes. Many will simply refrain from lending at all once the remaining lease term goes beneath a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Morden home.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
Royal Bank of Scotland Mortgage term plus 30 years.

What makes us experts in Morden lease extensions?

Irrespective of whether you are a tenant or a freeholder in Morden,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Morden valuers.

Morden Lease Extension Case Studies:

Milo, Morden, South West London,

Milo was the the leasehold owner of a high value flat in Morden on the market with a lease of just over 59 years left. Milo on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Morden case:

In 2010 we were phoned by Mr and Mrs. E Bertrand who, having purchased a newly refurbished flat in Morden in June 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Morden with a long lease were valued around £174,200. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 21 March 2077. Considering the 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.

Decision in Wandsworth

An example of a Lease Extension matter before the tribunal for a Morden 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 number of years remaining on the existing lease(s) was 62.94 years.