With a long leasehold property in Clacton On Sea, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Anyone in Clacton On Sea with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When a lease has less than 80 years left, under the current statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Clacton On Sea with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Clacton On Sea,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Clacton On Sea valuers.
Caleb owned a 2 bedroom flat in Clacton On Sea on the market with a lease of just over 61 years remaining. Caleb informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last Spring we were e-mailed by Mr and Mrs. K Richardson , who took over the lease of a garden apartment in Clacton On Sea in May 2004. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Identical homes in Clacton On Sea with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 billed quarterly. The lease finished on 12 April 2076. Considering the 50 years left we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including legals.
Last Christmas we were called by Dr Omar Davies , who completed a studio apartment in Clacton On Sea in August 1996. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable homes in Clacton On Sea with an extended lease were worth £208,200. The mid-range ground rent payable was £65 collected annually. The lease terminated on 25 May 2087. Given that there were 61 years left we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including legals.