With a residential leasehold premises in Mortlake, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years left. Leasehold owners in Mortlake with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years outstanding, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Mortlake,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mortlake valuers.
Muhammad was the the leasehold proprietor of a high value flat in Mortlake on the market with a lease of a little over 72 years unexpired. Muhammad on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Ellie Jones was assigned a lease of a newly refurbished flat in Mortlake in February 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative properties in Mortlake with an extended lease were in the region of £213,600. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 18 September 2082. Considering the 57 years remaining we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Mortlake premises is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case affected 3 flats. The unexpired term as at the valuation date was 66.25 years.