Why you should commence your Leigh On Sea lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4>
Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/leigh-on-sea">Leigh On Sea</a> property value </h4>
<p> It’s a harsh certainty that a Leigh On Sea residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Leigh On Sea property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Leigh On Sea will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
<h4>An extended lease is almost the same value as a freehold</h4>
<p>
Leasehold premises in Leigh On Sea with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it. <h4>Lenders will not loan monies with a short lease</h4> Mortgage lenders have set criteria when loaning monies secured on leasehold property. Many will simply not lend at all once an unexpired lease term falls beneath a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Leigh On Sea home.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Chelsea Building Society</td>
<td> 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.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
<tr>
<td>Yorkshire Building Society</td>
<td> 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.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Leigh On Sea lease extension solicitors or enfranchisement solicitors
</h4>
<p>
The conveyancing solicitors 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.
<h4>
Leigh On Sea Lease Extension Example Cases:
</h4>
<h5> Ryan, Leigh On Sea, Essex,</h5>
<p>
Ryan owned a high value flat in Leigh On Sea on the market with a lease of fraction over 59 years outstanding. Ryan on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
<h5>Leigh On Sea case:</h5>
<p> Mr W Miller was assigned a lease of a purpose-built flat in Leigh On Sea in January 1997. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative flats in Leigh On Sea with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 collected yearly. The lease expired in 2104. Given that there were 78 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
<h5>Leigh On Sea case:</h5>
<p>
In 2014 we were contacted by Dr Oliver Khan who, having was assigned a lease of a first floor flat in Leigh On Sea in November 2003. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Leigh On Sea with 100 year plus lease were worth £186,000. The average amount of ground rent was £65 collected per annum. The lease elapsed in 2084. Given that there were 58 years outstanding we calculated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.
</div>