On the balance of probabilities where you own a flat in Morden you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Morden can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 recent months Ibrahim, came very near to the eighty-year threshold with the lease on his leasehold apartment in Morden. Having bought his flat two decades ago, the unexpired term was of no interest. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Ibrahim arranged for a lease extension at the eleventh hour last May. Ibrahim and the freeholder in the end agreed on sum of £5,500 . If the lease had dropped lower than 80 years, the premium would have gone up by a minimum £900.
Mr and Mrs. V King bought a ground floor flat in Morden in July 2007. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical premises in Morden with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed per annum. The lease terminated on 9 August 2101. Having 75 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of 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 number of years remaining on the existing lease(s) was 62.94 years.