Benfleet leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Benfleet will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
The conveyancers that we work with handle Benfleet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her purpose-built flat in Benfleet, Alice initiated the lease extension process as the eighty year mark was quickly advancing. The transaction completed in February 2006. The freeholder’s costs were kept to an absolute minimum.
Mr F Parker moved into a one bedroom apartment in Benfleet in October 2012. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparative flats in Benfleet with a long lease were in the region of £242,600. The average amount of ground rent was £45 collected yearly. The lease came to a finish on 25 September 2093. Considering the 67 years remaining we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of costs.
In 2009 we were called by Dr Caitlin Garcia who, having owned a purpose-built apartment in Benfleet in October 2000. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Benfleet with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed yearly. The lease finished in 2104. Considering the 78 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.