Laindon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Laindon tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Laindon you must check if your lease has between 70 and ninety years left. There are good reasons why a Laindon flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Laindon with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Laindon leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a 2 bedroom apartment in Laindon on the market with a lease of a few days over 72 years left. Tommy informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2010 we were approached by Mr and Mrs. H Gray who, having owned a garden flat in Laindon in June 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable flats in Laindon with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease ran out on 21 August 2082. Having 57 years remaining we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Ms F Jones was assigned a lease of a garden apartment in Laindon in May 1995. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative premises in Laindon with a long lease were worth £245,000. The average ground rent payable was £50 billed quarterly. The lease ended in 2093. Taking into account 68 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.