As the length of the unexpired term of a Benfleet residential lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Benfleet will qualify for this right; however a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Benfleet can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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.
Following lengthy discussions with the landlord of her garden apartment in Benfleet, Georgina started the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work was concluded in November 2011. The freeholder’s costs were negotiated to less than 650 GBP.
In 2009 we were phoned by Mr and Mrs. O Hill who, having was assigned a lease of a first floor flat in Benfleet in May 2007. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Benfleet with an extended lease were worth £210,600. The average ground rent payable was £45 billed quarterly. The lease lapsed in 2086. Taking into account 62 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus legals.
Last Christmas we were phoned by Mrs Amber Campbell , who purchased a studio apartment in Benfleet in May 2006. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Identical homes in Benfleet with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed on 6 November 2097. Taking into account 73 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.