Southend On Sea leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Southend On Sea will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Southend On Sea 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.
Eli was the the leasehold owner of a studio apartment in Southend On Sea on the market with a lease of just over fifty eight years unexpired. Eli informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last Summer we were approach by Mr and Mrs. S Rodríguez , who acquired a basement flat in Southend On Sea in January 2001. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative properties in Southend On Sea with an extended lease were in the region of £270,000. The average ground rent payable was £65 billed monthly. The lease elapsed on 4 August 2093. Having 68 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
Last Christmas we were e-mailed by Mr and Mrs. P Green , who acquired a ground floor flat in Southend On Sea in May 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable premises in Southend On Sea with a long lease were valued about £208,600. The mid-range ground rent payable was £60 billed quarterly. The lease came to a finish in 2082. Considering the 57 years unexpired we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.