Benfleet leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Benfleet will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Benfleet,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Benfleet valuers.
Last Winter Jayden, came very near to the eighty-year mark with the lease on his studio flat in Benfleet. Having bought his flat twenty years previously, the length of the lease was of minimal significance. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Jayden extended the lease just under the wire last March. Jayden and the landlord subsequently agreed on the final figure of £6,000 . If he not met the deadline, the sum would have gone up by at least £925.
In 2013 we were called by Dr Daisy Taylor who, having completed a studio apartment in Benfleet in January 2012. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Benfleet with a long lease were in the region of £280,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2104. Considering the 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Mr K Nelson moved into a purpose-built apartment in Benfleet in July 2010. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Identical properties in Benfleet with an extended lease were in the region of £191,000. The average ground rent payable was £65 invoiced annually. The lease termination date was in 2084. Having 58 years outstanding we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus costs.