Laindon leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Laindon will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Laindon with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Laindon,the lease extension lawyers 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 Laindon valuers.
Half a year ago Kian, started to get close to the 80-year mark with the lease on his one bedroom flat in Laindon. Having purchased his home two decades ago, the length of the lease was of no relevance. As luck would have it, he realised he needed to take action soon on a lease extension. Kian arranged for a lease extension just under the wire last January. Kian and the freeholder via the managing agents subsequently agreed on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by at least £900.
Mr and Mrs. G Hill owned a ground floor flat in Laindon in April 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Laindon with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 billed annually. The lease came to a finish in 2099. Considering the 73 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Dr J Howard completed a studio apartment in Laindon in April 1995. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Laindon with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 billed quarterly. The lease came to a finish in 2079. Given that there were 53 years unexpired we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including fees.