Mersea Island leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Mersea Island will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Mersea Island,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mersea Island valuers.
Following lengthy correspondence with the freeholder of her one bedroom flat in Mersea Island, Anna initiated the lease extension process as the 80 year threshold was fast nearing. The lease extension was finalised in April 2007. The freeholder’s charges were negotiated to slightly above 500 pounds.
Last Spring we were called by Mrs Natalie Scott , who was assigned a lease of a ground floor apartment in Mersea Island in June 1997. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative properties in Mersea Island with a long lease were valued about £168,800. The mid-range amount of ground rent was £60 collected annually. The lease terminated on 17 September 2080. Considering the 55 years outstanding we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.
Ms J Stewart moved into a garden flat in Mersea Island in July 2008. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical properties in Mersea Island with a long lease were valued around £235,200. The average ground rent payable was £45 collected quarterly. The lease came to a finish in 2091. Taking into account 66 years unexpired we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.