Top reasons for Mere lease extension

Top reasons for lease extension now:

A Mere lease depreciates with the years remaining on the lease.

Mere leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Mere tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Mere you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Mere property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Mere with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders will not lend with a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with less than seventy years unexpired - although this varies from lender to lender. A buyer will no doubt encounter difficulties in obtaining a mortgage and this could result in your Mere property being difficult to sell or to obtain finance on.

What makes us experts in Mere lease extensions?

The conveyancers that we work with procure Mere 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 conveyancing solicitor we work with provide it.

Mere Lease Extension Example Cases:

Reuben, Mere, Wiltshire,

Reuben was the the leasehold proprietor of a studio apartment in Mere on the market with a lease of just over 59 years left. Reuben on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.

Mere case:

Last May we were contacted by Mr D Hernández , who acquired a one bedroom flat in Mere in August 2005. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical residencies in Mere with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 collected yearly. The lease expired on 25 July 2093. Considering the 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.

Mere case:

Mr and Mrs. J Howard was assigned a lease of a one bedroom apartment in Mere in March 2010. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Mere with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2082. Considering the 56 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.