Leigh On Sea leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Leigh On Sea will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| 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. |
Lease extensions in Leigh On Sea can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Leigh On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason owned a studio flat in Leigh On Sea on the market with a lease of a little over 59 years outstanding. Mason on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr and Mrs. A Lefèvre took over the lease of a studio apartment in Leigh On Sea in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Leigh On Sea with an extended lease were valued around £186,000. The average amount of ground rent was £65 collected per annum. The lease expired in 2084. Given that there were 58 years as a residual term we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus fees.
In 2010 we were e-mailed by Mr V Howard who, having completed a basement apartment in Leigh On Sea in May 2012. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable properties in Leigh On Sea with a long lease were worth £250,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed on 17 April 2095. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.