The closer a domestic lease in Canvey Island nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Canvey Island will qualify for this right; however a conveyancer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
|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.|
|Godiva Mortgages||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.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
The conveyancers that we work with procure 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.
During the course of the last few months George, started to get close to the eighty-year threshold with the lease on his leasehold flat in Canvey Island. In buying his flat two decades ago, the length of the lease was of no relevance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. George was able to extend his lease at the eleventh hour in June. George and the freeholder eventually agreed on sum of £5,000 . If he had missed the deadline, the figure would have increased by at least £850.
In 2009 we were approached by Dr Dexter Peterson who, having completed a basement apartment in Canvey Island in October 2007. 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 properties in Canvey Island with a long lease were worth £233,200. The average ground rent payable was £60 billed annually. The lease finished on 26 July 2082. Given that there were 61 years remaining we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus costs.
Last Winter we were called by Dr E Morel , who was assigned a lease of a garden apartment in Canvey Island in August 1997. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable properties in Canvey Island with 100 year plus lease were in the region of £166,800. The mid-range amount of ground rent was £50 invoiced annually. The lease elapsed in 2071. Given that there were 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.