On the balance of probabilities if you own a flat in Mersea Island you actually own a long leasehold interest over your property
Leasehold residencies in Mersea Island with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
Using our service gives you increased control over the value of your Mersea Island leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Milo was the the leasehold proprietor of a studio flat in Mersea Island on the market with a lease of a few days over 59 years outstanding. Milo on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last month we were called by Mrs B Howard , who purchased a recently refurbished flat in Mersea Island in March 1998. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical homes in Mersea Island with a long lease were valued about £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish in 2106. Given that there were 80 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mr Leon Thomas was assigned a lease of a recently refurbished flat in Mersea Island in June 2007. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Mersea Island with an extended lease were worth £200,800. The average ground rent payable was £65 collected monthly. The lease concluded on 2 February 2086. Considering the 60 years as a residual term we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.