The value of Laindon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
Leasehold properties in Laindon with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Laindon,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 experience and the close ties they enjoy with Laindon valuers.
Subsequent to unsuccessful negotiations with the freeholder of her first floor flat in Laindon, Lydia commenced the lease extension process as the 80 year mark was quickly approaching. The legal work was finalised in May 2009. The landlord’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Dr C Laurent who, having purchased a ground floor flat in Laindon in January 1998. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative residencies in Laindon with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished on 16 September 2080. Having 54 years remaining we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including costs.
Last Spring we were approach by Ms T Hall , who was assigned a lease of a one bedroom apartment in Laindon in August 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Laindon with an extended lease were valued about £227,800. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed on 22 July 2091. Having 65 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.