Chances are that where you own a flat in Mersea Island you actually own a long leasehold interest over your property
Leasehold residencies in Mersea Island with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Trailing protracted negotiations with the freeholder of her leasehold flat in Mersea Island, Mia commenced the lease extension process as the eighty year mark was rapidly advancing. The legal work completed in November 2006. The landlord’s costs were negotiated to approximately 500 GBP.
Last month we were called by Mr and Mrs. D Rivera , who was assigned a lease of a newly refurbished flat in Mersea Island in July 2005. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparable residencies in Mersea Island with a long lease were worth £255,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2096. Given that there were 71 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. M Vincent owned a first floor flat in Mersea Island in May 2011. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar flats in Mersea Island with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease ended on 22 August 2076. Considering the 51 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 plus costs.