The only way is down when it comes to Clacton On Sea lease terms. Clacton On Sea properties that have a lease term fewer than 80 years will de-escalate in market price even faster, and the cost to extend your lease will rise.
Leasehold premises in Clacton On Sea with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you enhanced control over the value of your Clacton On Sea leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a 2 bedroom flat in Clacton On Sea on the market with a lease of just over fifty eight years unexpired. Jason informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Jason to exercise his statutory right. Jason procured expert advice and secured an acceptable deal informally and sell the property.
Ms Millie Turner moved into a first floor apartment in Clacton On Sea in September 1996. The question was if we could estimate the price could be for a ninety year lease extension. Comparable premises in Clacton On Sea with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2084. Taking into account 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of fees.
In 2010 we were contacted by Dr Georgia Clark who, having moved into a one bedroom flat in Clacton On Sea in May 2005. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical premises in Clacton On Sea with an extended lease were worth £255,000. The average ground rent payable was £50 collected monthly. The lease came to a finish in 2095. Having 71 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.