When it comes to residential leasehold property in Laindon, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years left. Leasehold owners in Laindon with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the current Act the freeholder can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with handle Laindon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted negotiations with the landlord of her one bedroom apartment in Laindon, Maisie commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was finalised in June 2009. The freeholder’s charges were negotiated to about 700 GBP.
Mr Leo Rogers acquired a one bedroom flat in Laindon in June 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Laindon with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease termination date was on 26 May 2100. Having 75 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Mr T Peterson was assigned a lease of a one bedroom flat in Laindon in May 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Laindon with a long lease were in the region of £173,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease end date was on 23 February 2080. Having 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.