The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Mersea Island may extend the lease for a further 90 years in accordance with statute. Do think carefully before delaying your Mersea Island lease extension. Shelving that expense now simply increases the amount you will eventually have to pay to extend the lease.
Leasehold premises in Mersea Island with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Mersea Island 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 lawyer we work with provide it.
18 months ago Joshua, started to get near to the eighty-year threshold with the lease on his first floor apartment in Mersea Island. Having bought his home 19 years ago, the unexpired term was of no interest. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Joshua arranged for a lease extension just ahead of time last April. Joshua and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have increased by at least £1,100.
Dr Lydia Martin acquired a basement flat in Mersea Island in May 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Mersea Island with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 25 February 2089. Given that there were 64 years remaining we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 not including expenses.
Mr and Mrs. M White owned a ground floor flat in Mersea Island in February 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative properties in Mersea Island with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease ended on 13 June 2100. Considering the 75 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.