Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Benfleet. Clearly, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Benfleet have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Benfleet lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Benfleet with more than 100 years remaining on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Benfleet can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with Benfleet 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 Connor, came perilously near to the 80-year threshold with the lease on his one bedroom flat in Benfleet. Having bought his flat 18 years ago, the length of the lease was of little interest. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Connor was able to extend his lease just ahead of time last May. Connor and the landlord subsequently settled on sum of £5,000 . If the lease had gone to less than 80 years, the premium would have increased by at least £1,075.
Mr Nathan Martinez was assigned a lease of a studio flat in Benfleet in January 1999. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable residencies in Benfleet with a long lease were valued around £254,200. The average amount of ground rent was £60 billed monthly. The lease lapsed in 2077. Taking into account 51 years as a residual term we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus costs.
Ms M Girard was assigned a lease of a one bedroom apartment in Benfleet in April 1997. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative homes in Benfleet with 100 year plus lease were worth £215,600. The average amount of ground rent was £45 billed quarterly. The lease lapsed in 2088. Given that there were 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of legals.