There is no doubt about it a leasehold property in Southend On Sea is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Southend On Sea will meet the qualifying criteria; that being said a lawyer should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Southend On Sea with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Southend On Sea leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Matthew, started to get near to the 80-year threshold with the lease on his basement apartment in Southend On Sea. In buying his property 18 years ago, the length of the lease was of little bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Matthew was able to extend his lease at the eleventh hour in June. Matthew and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If the lease had slipped lower than 80 years, the amount would have become more costly by at least £1,100.
In 2014 we were e-mailed by Ms J Clarke who, having was assigned a lease of a basement apartment in Southend On Sea in March 1998. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable premises in Southend On Sea with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease finished on 2 June 2096. Taking into account 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Mr and Mrs. F Sharif completed a garden flat in Southend On Sea in February 2000. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable premises in Southend On Sea with 100 year plus lease were valued about £225,800. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish in 2085. Given that there were 60 years left we estimated the premium to the landlord for the lease extension to be between £25,700 and £29,600 not including fees.