Main reasons to commence your Meir lease extension

Why you should commence your Meir lease extension today:

Increase your lease and increase your Meir property value

Meir residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Meir with more than one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not grant a mortgage on a short lease

The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Meir lease extension solicitors or enfranchisement solicitors

Engaging our service gives you enhanced control over the value of your Meir leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Meir Lease Extension Example Cases:

Mia, Meir, Staffordshire,

Off the back of unsuccessful negotiations with the freeholder of her purpose-built flat in Meir, Mia started the lease extension process as the 80 year deadline was swiftly coming. The transaction was finalised in May 2012. The landlord’s costs were kept to an absolute minimum.

Meir case:

Mr and Mrs. N Evans completed a one bedroom apartment in Meir in March 2008. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Meir with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 billed quarterly. The lease finished in 2090. Considering the 64 years remaining we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.

Meir case:

Last Spring we were e-mailed by Mr and Mrs. W Wright , who purchased a one bedroom apartment in Meir in January 2010. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Meir with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expiry date was on 16 July 2101. Having 75 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.