When it comes to residential leasehold property in Canvey Island, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years left. Anyone in Canvey Island with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has less than 80 years left, under the relevant Act the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Canvey Island,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Canvey Island valuers.
Trailing lengthy discussions with the freeholder of her studio apartment in Canvey Island, Gemma commenced the lease extension process as the eighty year threshold was quickly approaching. The legal work completed in November 2006. The landlord’s fees were negotiated to about 700 pounds.
In 2011 we were phoned by Mr Alex Mason who, having was assigned a lease of a one bedroom flat in Canvey Island in March 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Canvey Island with an extended lease were worth £225,800. The average ground rent payable was £60 collected annually. The lease terminated in 2086. Considering the 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 not including legals.
In 2013 we were e-mailed by Mr and Mrs. R Patel who, having owned a one bedroom flat in Canvey Island in March 2002. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative residencies in Canvey Island with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish on 4 October 2106. Considering the 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.