The market value of a leasehold property in Leigh On Sea depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised prior to the eighty year threshold. Leasehold Reform legislation entitles Leigh On Sea qualifying lessees to an additional term of ninety years in addition to the remaining term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Leigh On Sea with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| Leeds Building Society | |
| The Mortgage Works |
Engaging our service gives you increased control over the value of your Leigh On Sea leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold owner of a studio flat in Leigh On Sea being marketed with a lease of a few days over 72 years remaining. Jack on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Last year we were phoned by Mrs Isobel Garcia , who was assigned a lease of a studio flat in Leigh On Sea in October 2007. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Leigh On Sea with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed on 7 July 2095. Taking into account 69 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2013 we were contacted by Dr James King who, having moved into a garden flat in Leigh On Sea in April 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Leigh On Sea with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 billed annually. The lease terminated in 2106. Having 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.