The market value of a leasehold property in Leigh On Sea is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded well before the eighty year threshold. Statute enables Leigh On Sea qualifying lessees to an additional term of 90 years in addition to the remaining term, at a notional rent (no ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Leigh On Sea can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
After unsuccessful correspondence with the freeholder of her one bedroom flat in Leigh On Sea, Naomi commenced the lease extension process as the eighty year threshold was quickly coming. The lease extension completed in July 2014. The landlord’s costs were negotiated to about 600 pounds.
Dr Alex Ward completed a one bedroom flat in Leigh On Sea in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Leigh On Sea with a long lease were valued about £168,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed on 14 November 2080. Taking into account 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.
Last Christmas we were called by Mr and Mrs. C Alexander , who acquired a first floor apartment in Leigh On Sea in September 1995. We are asked if we could approximate the price would be for a 90 year lease extension. Similar homes in Leigh On Sea with a long lease were valued about £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed on 26 August 2091. Having 66 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.