Mortimer leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Mortimer will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Mortimer with in excess of 100 years outstanding on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Mortimer leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Eli, came precariously near to the 80-year threshold with the lease on his studio apartment in Mortimer. In buying his flat 18 years ago, the lease term was of minimal concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Eli was able to extend his lease at the eleventh hour in June. Eli and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If he not met the deadline, the sum would have escalated by at least £1,100.
In 2014 we were approached by Mr and Mrs. J Girard who, having bought a basement flat in Mortimer in May 2009. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Mortimer with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease expired in 2098. Having 73 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Last Christmas we were contacted by Mr E Roux , who purchased a purpose-built flat in Mortimer in June 2004. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Similar residencies in Mortimer with an extended lease were worth £235,600. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed in 2087. Taking into account 62 years left we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus professional charges.