The closer a residential lease in Morden nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Morden will meet the qualifying criteria; however a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Morden with more than one hundred years left 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Morden,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Morden valuers.
In the wake of eight months of unsuccessful correspondence with the freeholder of her studio flat in Morden, Aimee initiated the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in January 2013. The landlord’s costs were negotiated to a tad over 450 GBP.
Ms Niamh Wood was assigned a lease of a recently refurbished flat in Morden in June 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Morden with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 billed every twelve months. The lease termination date was on 21 May 2075. Having 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.
An example of a Lease Extension matter before the tribunal for a Morden property 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.