Main reasons to start your Morden lease extension

Why you should start your Morden lease extension today:

Increase your lease and increase your Morden property value

Morden leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Morden will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated 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

Leasehold premises in Morden with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are regarded as deficient security.

Get in touch with one of our Morden lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with procure Morden 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.

Morden Lease Extension Case Summaries:

Aiden, Morden, South West London

Half a year ago Aiden, started to get close to the eighty-year mark with the lease on his ground floor flat in Morden. In buying his flat 18 years previously, the length of the lease was of little importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Aiden was able to extend his lease at the eleventh hour last September. Aiden and the freeholder in the end agreed on the final figure of £5,500 . If the lease had dropped to less than 80 years, the amount would have gone up by a minimum £950.

Morden case:

Ms Kayleigh Norbert purchased a ground floor flat in Morden in June 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Morden with a long lease were in the region of £189,000. The mid-range ground rent payable was £55 billed monthly. The lease ended in 2079. Having 53 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.