With a long leasehold premises in Clacton On Sea, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Clacton On Sea with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has fewer than eighty years remaining, under the current statute the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Clacton On Sea with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Clacton On Sea,the lease extension experts that we work with will always be happy 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.
Kai owned a conversion flat in Clacton On Sea being marketed with a lease of fraction over sixty years outstanding. Kai on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Kai to invoke his statutory right. Kai procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. Y Howard purchased a first floor apartment in Clacton On Sea in August 2001. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparable properties in Clacton On Sea with a long lease were valued around £255,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 18 November 2096. Considering the 71 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. H Norbert acquired a ground floor flat in Clacton On Sea in January 2011. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical homes in Clacton On Sea with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 collected every twelve months. The lease expired in 2076. Taking into account 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus costs.