Merton Lease Extensions

Living in Merton:

Perhaps best known for hosting the annual Wimbledon Tennis Championships, the borough of Merton is a peaceful, leafy green area on the South-West outskirts of London.

The Domesday Book, the first survey of landholdings in England and parts of Wales, reveals that Merton had only 69 households in 1086. Now, the population of Merton stands at a much more significant figure of 215,187 individuals (ONS, Census 2021).

The range of properties in Merton includes grand houses, Victorian terraces and modern new builds – many of which will be sold under a leasehold agreement. The Lease Extension Company has composed this simple guide to understand how lease extensions operate in Merton.

• Average House Price: According to Rightmove, the average property price in Merton averaged £712,363 over the last year.
• Areas in Merton: Bushey Mead, Colliers Wood, Copse Hill, Cottenham Park, Crooked Billet, Earlsfield, Lower Morden, Merton Park, Mitcham, Mitcham Common, Morden, Morden Park, Motspur Park, New Malden, Norbury, Pollards Hill, Raynes Park, South Wimbledon, St. Helier, Summerstown, Sutton Common, Tooting Broadway, Wimbledon, Wimbledon Park.
• Local Authority: The local authority of the London Borough of Merton is Merton Council.

Lease Extension Regulations in Merton

Leaseholders in Merton have a statutory right to extend their lease by an additional 90 years.

There are two pathways to gaining a lease extension: the informal (voluntary) route and the formal (statutory) route. Clarion Housing, which manages most of the housing stock in Merton, offers leaseholders the opportunity to choose between a formal or informal lease extension.

However, we advise taking the statutory route if you have owned your property for at least two years since it offers significant protection under the Leasehold Reform, Housing and Urban Development Act 1993.

The Lease Extension Company has executed many successful statutory lease extensions in and around London, evidenced by our case studies. We can provide a professional surveyor and experienced legal guidance to ensure the smoothest procedure, the cheapest premium and the fairest lease terms for your property.

The Lease Extension Process

See below for a brief overview of the statutory lease extension procedure.

• Eligibility Check
• Valuation
• Serving the Section 42 Notice
• Receipt of the Section 45 Counter Offer
• Negotiation
• Agreement of Terms
• Registration of your new lease

For further details, please visit our ‘How Long Will My Lease Take?’ article for more information about each step.

Serving the Section 42 Tenant’s Notice

Before your Section 42 notice is drafted, one of our firms of specialist chartered surveyors will undertake the valuation of your property for the purpose of the lease extension and identify the likely ‘premium’ (the price of your lease extension) you will pay your freeholder.

Identifying Your Competent Landlord

Our specialist solicitors will also identify the ‘competent landlord’ whose interest in the property is long enough to grant your 90-year lease extension.

Sometimes, this will be the direct landlord or housing management to whom you pay your service charge or ground rent. However, the competent landlord is often the freeholder of the building.

The Leasehold Reform Housing and Urban Development Act 1993 requires leaseholders to serve a Tenant’s Notice (Section 42 notice) on the ‘competent landlord’.

The Section 42 notice commences the lease extension and must include specific legal information. This is a technical legal notice, and it’s imperative that it’s correctly drafted and validated to ensure your lease extension is deemed valid.

At The Lease Extension Company, we work with specialist legal firms in this niche area of law, ensuring that your notice is drafted and reviewed by leading experts in this field. The Section 42 notice will be sent to you for approval before it is forwarded to the solicitors who will serve the notice to the Freeholder on your behalf.

See below for details of the main freeholders operating in Merton.

Key Freeholders in Merton

Merton Council’s webpage dedicated to ‘Right To Buy and Leaseholders’ states that in March 2010, all Merton Council homes were transferred to the housing association Merton Priory Homes – now operating as Clarion Housing. All leasehold homes are now built and run by Clarion’s property development company, Latimer Homes.

Clarion or Latimer are likely to be your competent landlord. However, if they are not the freeholder, you may only be able to proceed with a lease extension if they have sufficient years left on their Headlease.

Other freeholders you have the option of contacting are Freshwater and E&M Limited.

Finding your Freeholder

Your freeholder’s contact information will be listed in your original lease document. If you do not have your lease document, you can request a copy from the HM Land Registry for a small fee. As a LEC client, we can arrange this on your behalf.

How Much Will Your Lease Extension Cost?

Lease extension premiums vary from property to property; however, the cost is based on a few factors, including:

• The value of your property.
• The amount of ground rent and how much it increases over time.
• The number of years remaining on your lease.

Costs can also depend on the route to obtain your lease extension.

• Informal Lease Extensions: Costs are determined and agreed upon directly with your freeholder.
• Statutory Lease Extensions: You are responsible for the valuation and legal costs of both you and your freeholder, plus the premium for the additional years on your lease.

If you’re curious about your expenses, use our handy Lease Extension Calculator to estimate your premium.

About The Lease Extension Company’s Fixed Fee Service

At The Lease Extension Company, we take a fuss-free approach to this complex area of property law.

We will develop a detailed plan covering all stages, legal requirements and your expected costs which we combine into one simple fixed fee so you know what to expect from the get-go.

You’ll also receive the guidance of an experienced surveyor and solicitor to ensure you’re not paying a penny more for your premium than necessary.

Start Your Lease Extension in Merton Today.

Are you considering a lease extension for your Merton property? We’d love to hear from you.

Get a quote or arrange a free consultation with our team of experts by filling out our handy online form, calling us on 0800 098 2770 or emailing [email protected].