It’s an underpublicised truth that a Canvey Island residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Canvey Island property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Canvey Island will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Canvey Island with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Sebastian was the the leasehold owner of a 2 bedroom flat in Canvey Island on the market with a lease of just over fifty eight years left. Sebastian on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last September we were called by Ms T Brooks , who bought a garden apartment in Canvey Island in June 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Canvey Island with 100 year plus lease were worth £208,600. The average ground rent payable was £60 billed monthly. The lease concluded on 13 October 2083. Considering the 57 years unexpired we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.
Last Summer we were phoned by Dr J Bennett , who bought a studio flat in Canvey Island in May 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Canvey Island with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out in 2103. Considering the 77 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.