Canvey Island leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Canvey Island will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Canvey Island leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Callum, started to get close to the eighty-year threshold with the lease on his first floor flat in Canvey Island. In buying his flat two decades ago, the length of the lease was of no interest. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Callum extended the lease at the eleventh hour in March. Callum and the freeholder via the managing agents ultimately agreed on a premium of £5,500 . If he not met the deadline, the premium would have become more costly by a minimum £1,000.
Last Autumn we were called by Mr D Walker , who was assigned a lease of a one bedroom flat in Canvey Island in March 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Canvey Island with an extended lease were valued about £205,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed on 27 June 2105. Having 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2013 we were called by Dr Tommy Walker who, having purchased a basement flat in Canvey Island in January 2004. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical premises in Canvey Island with a long lease were valued around £275,000. The average ground rent payable was £65 invoiced annually. The lease came to a finish in 2094. Considering the 68 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.