The only way is down when it comes to Benfleet lease terms. Benfleet leaseholds that have a residual term shorter than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold premises in Benfleet with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Benfleet,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Benfleet valuers.
Two years ago Benjamin, came perilously near to the eighty-year mark with the lease on his ground floor apartment in Benfleet. Having purchased his home 19 years previously, the lease term was of minimal relevance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Benjamin was able to extend his lease just under the wire in July. Benjamin and the landlord ultimately settled on sum of £5,500 . If the lease had dropped below 80 years, the amount would have gone up by at least £950.
Dr Sophia Gray acquired a ground floor flat in Benfleet in September 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Identical properties in Benfleet with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected per annum. The lease expired in 2096. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last Summer we were contacted by Mr and Mrs. G Murphy , who took over the lease of a one bedroom apartment in Benfleet in May 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Benfleet with a long lease were valued around £246,800. The average amount of ground rent was £60 billed annually. The lease expired on 13 April 2076. Given that there were 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of professional charges.