Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Benfleet. Clearly, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Benfleet have the right to extend the lease for an additional ninety years in accordance with legislation. Please give due attention before putting off your Benfleet lease extension. Putting off the cost now simply increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Benfleet can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 a wealth of experience dealing with Benfleet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful negotiations with the freeholder of her first floor apartment in Benfleet, Sarah commenced the lease extension process as the 80 year deadline was quickly nearing. The lease extension completed in February 2015. The landlord’s charges were kept to an absolute minimum.
In 2010 we were approached by Dr U Martinez who, having purchased a one bedroom apartment in Benfleet in January 1995. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Benfleet with 100 year plus lease were worth £203,200. The average amount of ground rent was £65 billed monthly. The lease ended in 2086. Considering the 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including legals.
Mr J Baker acquired a one bedroom apartment in Benfleet in May 1996. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative premises in Benfleet with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ran out in 2096. Considering the 71 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.