Unfortunately that a Merriott residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Merriott property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Merriott will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB |
Using our service will provide you increased control over the value of your Merriott leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Freddie, came seriously near to the eighty-year threshold with the lease on his garden apartment in Merriott. In buying his home 18 years ago, the unexpired term was of no interest. by good luck, he recognised he would imminently be paying an inflated amount for a lease extension. Freddie was able to extend his lease just under the wire last July. Freddie and the freeholder subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have become more costly by at least £1,025.
Last Winter we were approach by Mr and Mrs. E Mitchell , who bought a studio flat in Merriott in June 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in Merriott with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 billed per annum. The lease ended on 13 May 2086. Considering the 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
Last Christmas we were contacted by Mr and Mrs. F Anderson , who moved into a first floor apartment in Merriott in October 2010. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable properties in Merriott with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 5 April 2097. Given that there were 71 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.