There is no doubt about it a leasehold property in Benfleet is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Benfleet will qualify for this right; however a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Benfleet with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Benfleet leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel owned a conversion apartment in Benfleet on the market with a lease of just over fifty eight years left. Daniel on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2011 we were phoned by Ms Anna Adams who, having took over the lease of a garden apartment in Benfleet in September 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable homes in Benfleet with an extended lease were valued about £235,200. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish on 27 September 2091. Taking into account 66 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
In 2010 we were approached by Mrs Kayleigh Nguyen who, having took over the lease of a basement apartment in Benfleet in August 2008. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical premises in Benfleet with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated in 2102. Having 77 years outstanding we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.