Mersea Island leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Mersea Island enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Mersea Island you would be well advised to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Mersea Island flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Mersea Island leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a 2 bedroom flat in Mersea Island on the market with a lease of fraction over 61 years left. Blake informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2011 we were approached by Mr and Mrs. A Evans who, having completed a studio flat in Mersea Island in April 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Mersea Island with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 collected monthly. The lease finished in 2087. Considering the 61 years left we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Last Spring we were called by Mrs U Edwards , who was assigned a lease of a studio flat in Mersea Island in February 2005. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Mersea Island with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 7 July 2098. Given that there were 72 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.