Benfleet leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Benfleet will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Benfleet with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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 also be not less than 75 years at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service will provide you enhanced 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harvey owned a studio apartment in Benfleet on the market with a lease of fraction over 61 years left. Harvey on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Harvey to exercise his statutory right. Harvey procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Christmas we were phoned by Mr and Mrs. D Lefebvre , who owned a basement flat in Benfleet in January 2006. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative residencies in Benfleet with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2105. Given that there were 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Last Spring we were approach by Ms Morgan Rogers , who bought a studio flat in Benfleet in June 1998. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Identical premises in Benfleet with an extended lease were worth £198,400. The mid-range ground rent payable was £65 collected annually. The lease expired in 2085. Considering the 59 years remaining we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.