Mortlake leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be payable. Flat owners in Mortlake will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Mortlake with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Mortlake leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Tommy, came precariously close to the eighty-year threshold with the lease on his basement apartment in Mortlake. In buying his flat two decades ago, the unexpired term was of minimal relevance. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Tommy was able to extend his lease just in the nick of time in January. Tommy and the landlord eventually agreed on a premium of £6,000 . If the lease had slipped lower than eighty years, the price would have increased by at least £1,075.
Dr Samuel Rose took over the lease of a ground floor apartment in Mortlake in July 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Mortlake with a long lease were valued around £223,400. The average ground rent payable was £60 billed yearly. The lease terminated on 9 September 2085. Considering the 59 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including expenses.
An example of a Freehold Enfranchisement decision for a Mortlake property 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 related to 3 flats. The unexpired term was 66.25 years.