Canvey Island residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Canvey Island with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Canvey Island,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Canvey Island valuers.
Two years ago Hugo, started to get close to the eighty-year mark with the lease on his basement flat in Canvey Island. In buying his property twenty years previously, the lease term was of no importance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Hugo was able to extend his lease just ahead of time last April. Hugo and the freeholder via the management company in the end agreed on sum of £6,000 . If he had missed the deadline, the price would have gone up by at least £1,075.
In 2013 we were e-mailed by Mr and Mrs. R Khan who, having purchased a garden apartment in Canvey Island in July 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Canvey Island with a long lease were in the region of £275,000. The average ground rent payable was £65 billed per annum. The lease expired on 6 February 2094. Taking into account 68 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
Last Christmas we were e-mailed by Mr Michael Rogers , who acquired a garden apartment in Canvey Island in November 1995. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Canvey Island with an extended lease were worth £208,600. The average amount of ground rent was £60 billed quarterly. The lease elapsed in 2083. Having 57 years unexpired we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus professional charges.