Mere leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher premium will be due. Leasehold owners in Mere will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Mere can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Mere lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel owned a 2 bedroom apartment in Mere on the market with a lease of fraction over fifty eight years unexpired. Gabriel informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were phoned by Dr Samuel Baker who, having bought a purpose-built apartment in Mere in September 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Mere with an extended lease were in the region of £240,600. The average ground rent payable was £60 billed quarterly. The lease ran out on 14 June 2088. Considering the 62 years remaining we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus professional charges.
Mr and Mrs. K Sánchez owned a recently refurbished apartment in Mere in May 1998. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar premises in Mere with an extended lease were worth £174,200. The average amount of ground rent was £55 invoiced per annum. The lease lapsed in 2077. Considering the 51 years left we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.