When it comes to long leasehold premises in Laindon, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years remaining. Anyone in Laindon with a lease approaching 81 years left should seriously consider extending it sooner than later. Once a lease has less than eighty years left, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Laindon can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 a wealth of experience procuring Laindon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the landlord of her ground floor apartment in Laindon, Chantelle initiated the lease extension process as the eighty year threshold was fast approaching. The transaction was concluded in July 2005. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were called by Ms K Davis who, having completed a studio flat in Laindon in August 2001. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable flats in Laindon with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed monthly. The lease expiry date was in 2088. Taking into account 63 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including expenses.
Ms H Young was assigned a lease of a ground floor flat in Laindon in August 2010. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Laindon with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £55 billed annually. The lease ran out on 10 July 2099. Having 74 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.