Top reasons for Merriott lease extension

Top reasons for lease extension now:

Increase your lease and increase your Merriott property value

Merriott residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.

An extended lease is almost the same value as a freehold

Leasehold residencies in Merriott with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not loan monies on 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 from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Merriott property becoming difficult to dispose of or remortgage.

What makes us experts in Merriott lease extensions?

Irrespective of whether you are a tenant or a landlord in Merriott,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Merriott valuers.

Merriott Lease Extension Case Studies:

George, Merriott, Somerset

During the course of the last few months George, started to get near to the eighty-year threshold with the lease on his first floor apartment in Merriott. Having purchased his home two decades ago, the unexpired term was of little concern. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. George extended the lease just under the wire in March. George and the freeholder in the end agreed on a premium of £5,500 . If the lease had gone to less than eighty years, the premium would have gone up by at least £1,150.

Merriott case:

Last Christmas we were e-mailed by Ms A Stewart , who was assigned a lease of a one bedroom flat in Merriott in August 2007. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Merriott with an extended lease were worth £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 18 August 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.

Merriott case:

Dr Kayleigh García bought a basement apartment in Merriott in January 2008. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable properties in Merriott with an extended lease were valued around £256,600. The average amount of ground rent was £60 collected quarterly. The lease terminated in 2078. Having 52 years outstanding we estimated the premium to the landlord to extend the lease to be within £41,800 and £48,400 not including expenses.