On the balance of probabilities if you own a flat in Canvey Island you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 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 conveyancing solicitor we work with provide it.
Subsequent to lengthy negotiations with the landlord of her studio flat in Canvey Island, Sophia initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was finalised in May 2007. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Dr Isabel Lefebvre who, having acquired a basement apartment in Canvey Island in April 2006. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative flats in Canvey Island with a long lease were worth £206,200. The average ground rent payable was £60 billed annually. The lease came to a finish in 2082. Given that there were 56 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Mrs Gemma Ramírez moved into a studio flat in Canvey Island in July 1997. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparable flats in Canvey Island with a long lease were valued around £300,000. The average ground rent payable was £50 invoiced monthly. The lease ended on 16 October 2102. Given that there were 76 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.