Laindon leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Flat owners in Laindon will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Laindon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Arthur was the the leasehold proprietor of a studio flat in Laindon being sold with a lease of a little over 59 years left. Arthur on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Autumn we were e-mailed by Dr Emily Turner , who was assigned a lease of a purpose-built apartment in Laindon in March 1999. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Laindon with a long lease were in the region of £173,800. The average amount of ground rent was £60 invoiced quarterly. The lease ran out on 28 November 2081. Considering the 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.
Last Autumn we were contacted by Ms Tia Ramírez , who purchased a one bedroom apartment in Laindon in September 2000. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical premises in Laindon with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 invoiced yearly. The lease expired on 23 October 2092. Having 66 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.