Mere leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Mere will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a landlord in Mere,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mere valuers.
Dylan owned a high value apartment in Mere being sold with a lease of a few days over 61 years remaining. Dylan on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and secured satisfactory deal informally and sell the property.
Last year we were contacted by Mrs V Khan , who bought a one bedroom flat in Mere in February 1999. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative properties in Mere with an extended lease were valued around £208,600. The average ground rent payable was £60 collected monthly. The lease ended in 2082. Considering the 57 years as a residual term we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.
Dr G Rogers moved into a first floor flat in Mere in June 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Mere with a long lease were worth £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed on 20 July 2102. Having 77 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.