Mortimer leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Mortimer will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Mortimer leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Zachary, started to get close to the eighty-year threshold with the lease on his basement flat in Mortimer. Having purchased his property 19 years ago, the lease term was of minimal relevance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Zachary extended the lease just in the nick of time in March. Zachary and the freeholder in the end settled on sum of £6,000 . If he failed to meet the deadline, the figure would have gone up by at least £900.
Mr and Mrs. G Moore took over the lease of a one bedroom flat in Mortimer in August 2010. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparable flats in Mortimer with a long lease were valued around £270,000. The average ground rent payable was £65 collected monthly. The lease lapsed in 2094. Taking into account 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Last Christmas we were e-mailed by Mr and Mrs. R Bennett , who took over the lease of a newly refurbished flat in Mortimer in November 1995. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical homes in Mortimer with an extended lease were worth £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease concluded on 18 February 2083. Having 57 years left we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.