Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Leigh On Sea. Clearly, the period of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Leigh On Sea have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give due deliberation before delaying your Leigh On Sea lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Leigh On Sea with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Leigh On Sea 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.
In the wake of 9 months of lengthy discussions with the freeholder of her first floor apartment in Leigh On Sea, Rachael initiated the lease extension process as the 80 year deadline was swiftly advancing. The lease extension was concluded in April 2007. The freeholder’s fees were kept to an absolute minimum.
Mr Seth Davis bought a recently refurbished flat in Leigh On Sea in March 1996. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Leigh On Sea with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease finished on 16 July 2096. Having 71 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Last month we were e-mailed by Dr Jasmine Lefèvre , who purchased a purpose-built flat in Leigh On Sea in January 1999. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Leigh On Sea with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 invoiced per annum. The lease ended on 1 November 2076. Given that there were 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.