When it comes to residential leasehold property in Morden, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years remaining. Leasehold owners in Morden with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has less than eighty years left, under the relevant statute the landlord can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Morden can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
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 procuring Morden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Felix, came precariously near to the eighty-year threshold with the lease on his studio apartment in Morden. In buying his property 18 years ago, the length of the lease was of minimal concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Felix arranged for a lease extension just under the wire in May. Felix and the freeholder via the management company eventually agreed on an amount of £6,000 . If he had missed the deadline, the premium would have gone up by at least £1,100.
In 2012 we were called by Mrs Hollie Collins who, having owned a one bedroom flat in Morden in February 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Morden with a long lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease terminated in 2099. Considering the 74 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
An example of a Lease Extension decision for a Morden premises 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 was in relation to 1 flat. The unexpired residue of the current lease was 62.94 years.