Laindon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Laindon enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Laindon you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Laindon leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Finn owned a 2 bedroom flat in Laindon being sold with a lease of a little over fifty eight years remaining. Finn informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. C Garcia who, having bought a ground floor flat in Laindon in October 2008. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar residencies in Laindon with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £55 collected quarterly. The lease came to a finish in 2100. Having 74 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last Winter we were contacted by Mr and Mrs. P Moore , who moved into a ground floor flat in Laindon in April 2002. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable properties in Laindon with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease concluded in 2080. Having 54 years outstanding we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including costs.