Why you should start your Minera lease extension

Why you should start your Minera lease extension today:

A Minera lease depreciates with the years remaining on the lease.

Minera leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher premium will be due. Flat owners in Minera will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not grant a mortgage with a short lease

The trend since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Minera lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Minera,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Minera valuers.

Minera Lease Extension Example Cases:

Harvey, Minera, Wrexham

18 months ago Harvey, came seriously near to the eighty-year mark with the lease on his basement flat in Minera. In buying his property two decades ago, the lease term was of minimal concern. Thankfully, he recognised he needed to take action soon on Extending the lease. Harvey was able to extend his lease just under the wire last July. Harvey and the landlord ultimately settled on the final figure of £6,000 . If the lease had descended below 80 years, the price would have gone up by a minimum £900.

Minera case:

In 2009 we were called by Mrs Alisha Martínez who, having bought a one bedroom apartment in Minera in February 2006. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Minera with an extended lease were worth £250,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expiry date was on 2 September 2094. Having 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.

Minera case:

Mr and Mrs. B Young owned a basement apartment in Minera in April 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Minera with an extended lease were in the region of £285,000. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish in 2105. Taking into account 79 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.