For those whose Morden home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Morden with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Morden can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Morden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Riley, came seriously near to the eighty-year mark with the lease on his ground floor flat in Morden. In buying his property 18 years previously, the lease term was of little relevance. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Riley extended the lease at the eleventh hour last June. Riley and the landlord subsequently settled on the final figure of £6,000 . If the lease had slipped lower than eighty years, the figure would have escalated by a minimum £925.
Dr H Bennett was assigned a lease of a one bedroom flat in Morden in April 2000. We are asked if we could approximate the price could be for a 90 year lease extension. Identical properties in Morden with a long lease were valued about £200,000. The average amount of ground rent was £50 collected annually. The lease terminated on 26 May 2102. Taking into account 77 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
An example of a Lease Extension matter before the tribunal for a Morden flat 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 remaining number of years on the lease was 62.94 years.