The market value of Meir leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than eighty years
Leasehold properties in Meir with more than 100 years left on the lease are often 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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Meir lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing protracted negotiations with the freeholder of her garden apartment in Meir, Chelsea started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension completed in May 2007. The landlord’s charges were negotiated to under five hundred pounds.
Last Autumn we were approach by Ms I Rodríguez , who completed a studio apartment in Meir in March 1995. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative premises in Meir with 100 year plus lease were valued around £235,200. The mid-range amount of ground rent was £45 billed every twelve months. The lease came to a finish on 6 November 2091. Given that there were 66 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
In 2013 we were approached by Mr and Mrs. B Dupont who, having acquired a purpose-built flat in Meir in July 2005. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative properties in Meir with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease terminated in 2102. Given that there were 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.