On the balance of probabilities where you own a flat in Morden you actually own a long leasehold interest over your property
Leasehold properties in Morden with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Morden leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ethan owned a conversion apartment in Morden on the market with a lease of a little over sixty years unexpired. Ethan informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Last Winter we were called by Mr and Mrs. F Girard , who completed a studio apartment in Morden in May 2006. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Morden with a long lease were valued around £260,200. The average ground rent payable was £65 billed annually. The lease came to a finish on 22 February 2091. Having 66 years left we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of 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 unexpired lease term was 62.94 years.