Unfortunately that a Mortimer residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Mortimer property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. Most flat owners in Mortimer will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Royal Bank of Scotland |
Lease extensions in Mortimer can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Mortimer lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo owned a studio apartment in Mortimer being sold with a lease of a few days over fifty eight years left. Theo on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2009 we were contacted by Mrs W Mercier who, having moved into a ground floor apartment in Mortimer in June 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Mortimer with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 invoiced per annum. The lease expiry date was in 2090. Given that there were 64 years outstanding we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.
Last Christmas we were approach by Mr and Mrs. S Ricardo , who completed a garden flat in Mortimer in March 2008. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical properties in Mortimer with a long lease were worth £184,000. The mid-range ground rent payable was £55 invoiced per annum. The lease lapsed on 27 August 2079. Considering the 53 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.