Unfortunately that a Benfleet residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Benfleet property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Benfleet will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Benfleet with in excess of one hundred years left on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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 are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Benfleet,the lease extension lawyers that we work with will always be prepared 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.
Subsequent to unsuccessful correspondence with the freeholder of her leasehold apartment in Benfleet, Mia commenced the lease extension process just as the lease was coming close to the all-important eighty-year mark. The transaction completed in April 2009. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mr John White who, having owned a one bedroom flat in Benfleet in March 2000. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Benfleet with an extended lease were worth £208,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended on 14 September 2087. Considering the 61 years remaining we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of costs.
Last month we were phoned by Mr Aaron Lewis , who moved into a one bedroom apartment in Benfleet in January 2000. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Benfleet with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed in 2098. Taking into account 72 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.