With a long leasehold premises in Benfleet, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Leasehold owners in Benfleet with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Benfleet with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Benfleet,the lease extension lawyers 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 Benfleet valuers.
In 2014 Joshua, came perilously near to the 80-year threshold with the lease on his basement flat in Benfleet. Having purchased his property 19 years previously, the unexpired term was of minimal interest. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Joshua was able to extend his lease just in the nick of time in July. Joshua and the landlord in the end settled on an amount of £6,000 . If he had missed the deadline, the price would have increased by at least £1,150.
Ms Madeleine Cox completed a ground floor apartment in Benfleet in August 2011. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative flats in Benfleet with an extended lease were worth £270,000. The average amount of ground rent was £55 billed yearly. The lease came to a finish on 3 June 2101. Having 75 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2014 we were contacted by Mr and Mrs. V Lee who, having completed a one bedroom apartment in Benfleet in February 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Benfleet with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease end date was in 2081. Taking into account 55 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.