Unfortunately that a Mersea Island residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Mersea Island property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Mersea Island will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Mersea Island with in excess of 100 years outstanding 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 property. 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 |
|---|---|
| Halifax | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Mersea Island can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge procuring 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.
Caleb was the the leasehold proprietor of a 2 bedroom apartment in Mersea Island being sold with a lease of a few days over sixty years left. Caleb informally approached his freeholder being a well known Bristol-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 £125 per annum. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. J Edwards who, having acquired a recently refurbished apartment in Mersea Island in October 2000. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Mersea Island with a long lease were in the region of £245,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated on 19 November 2094. Given that there were 68 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last year we were phoned by Dr Eliot Bonnet , who moved into a purpose-built apartment in Mersea Island in July 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical premises in Mersea Island with an extended lease were valued around £285,000. The average amount of ground rent was £55 collected annually. The lease terminated on 8 May 2105. Taking into account 79 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.