The only way is down when it comes to Merriott lease terms. Merriott properties that have a residual term shorter than 80 years will drop in value at a rapid rate, and the cost to extend your lease will go up.
Leasehold residencies in Merriott with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Merriott can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 a wealth of experience procuring Merriott lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Teddy, came critically near to the 80-year threshold with the lease on his leasehold apartment in Merriott. In buying his home two decades ago, the unexpired term was of minimal importance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Teddy arranged for a lease extension just under the wire in June. Teddy and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had descended below eighty years, the amount would have escalated by at least £900.
In 2014 we were contacted by Dr D Collins who, having purchased a studio flat in Merriott in March 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Merriott with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed in 2088. Considering the 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including fees.
Last Spring we were contacted by Dr Grace Edwards , who was assigned a lease of a garden flat in Merriott in March 2012. The question was if we could estimate the price would be to extend the lease by 90 years. Comparative properties in Merriott with an extended lease were valued around £265,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out in 2099. Considering the 74 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.