The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Benfleet have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Benfleet lease extension. Putting off that expense today simply escalates the price you will ultimately be required to pay to extend the lease.
Leasehold premises in Benfleet with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
The lawyers that we work with undertake Benfleet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Theo owned a high value apartment in Benfleet being sold with a lease of a few days over 61 years outstanding. Theo informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. R Adams completed a ground floor flat in Benfleet in June 1995. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical flats in Benfleet with an extended lease were in the region of £198,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease expired in 2085. Having 59 years left we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.
Last year we were called by Mr and Mrs. W Moreau , who moved into a first floor apartment in Benfleet in August 2008. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative properties in Benfleet with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2096. Having 70 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.