Canvey Island leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Leasehold owners in Canvey Island will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Canvey Island with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Canvey Island 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.
Nathan was the the leasehold owner of a high value flat in Canvey Island on the market with a lease of fraction over sixty years left. Nathan informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. T Edwards took over the lease of a purpose-built flat in Canvey Island in January 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Canvey Island with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced annually. The lease expired on 13 October 2074. Taking into account 50 years remaining we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.
In 2013 we were approached by Mr Alex Gunderson who, having was assigned a lease of a purpose-built apartment in Canvey Island in September 2011. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable flats in Canvey Island with a long lease were worth £280,000. The average amount of ground rent was £45 billed yearly. The lease ended in 2094. Considering the 70 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.