Unfortunately that a Merriott residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Merriott property prices.Once your lease nears 85ish years, you should start considering 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 slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Merriott will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Merriott with over 100 years left 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Merriott,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Merriott valuers.
Two years ago Kyle, started to get near to the 80-year threshold with the lease on his purpose- built flat in Merriott. In buying his property twenty years ago, the unexpired term was of no bearing. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Kyle extended the lease just in the nick of time in June. Kyle and the landlord who owned the flat above in the end settled on a premium of £6,000 . If the lease had gone below 80 years, the amount would have gone up by at least £975.
Mr and Mrs. J Garcia completed a garden flat in Merriott in November 2011. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparative premises in Merriott with 100 year plus lease were valued around £254,200. The average amount of ground rent was £60 collected monthly. The lease came to a finish in 2076. Taking into account 51 years left we calculated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including professional charges.
Last Winter we were e-mailed by Mr Samuel Patel , who took over the lease of a one bedroom apartment in Merriott in June 1996. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable properties in Merriott with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished on 20 June 2087. Given that there were 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of fees.