With a long leasehold premises in Canvey Island, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years left. Leasehold owners in Canvey Island with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Canvey Island leasehold, as your property will be more valuable and marketable in relation to the 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.
Isaac was the the leasehold owner of a conversion apartment in Canvey Island on the market with a lease of fraction over 72 years outstanding. Isaac informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Tyler Patel moved into a first floor flat in Canvey Island in March 2010. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Canvey Island with an extended lease were valued about £210,000. The average ground rent payable was £50 invoiced monthly. The lease concluded in 2106. Taking into account 80 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
Dr William Khan was assigned a lease of a first floor flat in Canvey Island in November 2010. The question was if we could approximate the price could be to extend the lease by ninety years. Comparable flats in Canvey Island with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 invoiced annually. The lease came to a finish in 2095. Taking into account 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.