As the the remaining lease term of a Mersea Island residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Mersea Island will meet the qualifying criteria; however a lawyer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Mersea Island can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mersea Island lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her one bedroom apartment in Mersea Island, Chloe initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension completed in March 2013. The landlord’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mrs Jennifer Jones who, having acquired a garden apartment in Mersea Island in July 2000. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable flats in Mersea Island with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 19 July 2095. Given that there were 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Autumn we were phoned by Mrs Freya Bertrand , who purchased a newly refurbished apartment in Mersea Island in October 1998. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar homes in Mersea Island with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced annually. The lease concluded in 2106. Taking into account 80 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.