Clacton On Sea leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Clacton On Sea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Clacton On Sea you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Clacton On Sea with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you increased control over the value of your Clacton On Sea leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold proprietor of a studio apartment in Clacton On Sea on the market with a lease of a little over fifty eight years unexpired. Ryan informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Ryan to invoke his statutory right. Ryan procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2009 we were e-mailed by Mr and Mrs. P Ricardo who, having was assigned a lease of a garden apartment in Clacton On Sea in February 2008. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar homes in Clacton On Sea with a long lease were valued about £225,400. The mid-range amount of ground rent was £45 collected quarterly. The lease expired in 2090. Taking into account 64 years unexpired we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus legals.
Mr Felix Lambert bought a studio apartment in Clacton On Sea in July 2004. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Clacton On Sea with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced per annum. The lease terminated on 6 February 2101. Taking into account 75 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.