Top reasons for Mere lease extension

Main reasons to commence your Mere lease extension today:

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

Unfortunately that a Mere residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Mere property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Mere will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.

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

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not issue a mortgage with a short lease

Nearly all mortgage lenders will not grant a mortgage on a lease with under seventy years left to run - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Mere property becoming difficult to sell or to obtain finance on.

What makes us experts in Mere lease extensions?

Irrespective of whether you are a tenant or a freeholder in Mere,the lease extension experts 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.

Mere Lease Extension Example Cases:

Caleb, Mere, Wiltshire

Half a year ago Caleb, started to get close to the 80-year mark with the lease on his studio apartment in Mere. Having bought his home twenty years previously, the length of the lease was of minimal interest. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Caleb arranged for a lease extension at the eleventh hour last March. Caleb and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he had missed the deadline, the sum would have become more costly by a minimum £1,075.

Mere case:

Mr and Mrs. L Díaz completed a newly refurbished apartment in Mere in September 2012. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Similar residencies in Mere with a long lease were valued about £198,800. The average ground rent payable was £55 billed annually. The lease terminated in 2081. Considering the 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus legals.

Mere case:

In 2010 we were approached by Mr C Scott who, having took over the lease of a purpose-built flat in Mere in June 2012. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Mere with a long lease were worth £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired on 28 August 2101. Taking into account 75 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.