The market value of a leasehold property in Meir depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed in advance of the eighty year threshold. Leasehold Reform legislation enables Meir qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Meir with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you better control over the value of your Meir leasehold, as your property will be more valuable and saleable in relation to the lease length should you want 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.
Cameron owned a 2 bedroom flat in Meir being sold with a lease of just over 59 years unexpired. Cameron informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Dr M Martin was assigned a lease of a one bedroom apartment in Meir in August 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Meir with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded on 21 August 2084. Given that there were 59 years remaining we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including fees.
Last Summer we were called by Mr J Laurent , who took over the lease of a one bedroom flat in Meir in June 2001. The question was if we could estimate the price could be to extend the lease by 90 years. Similar flats in Meir with a long lease were in the region of £255,000. The average ground rent payable was £50 collected annually. The lease lapsed in 2095. Taking into account 70 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.