It’s an underpublicised certainty that a Leigh On Sea residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Leigh On Sea property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to 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 Most leasehold owners in Leigh On Sea will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold premises in Leigh On Sea with in excess of 100 years remaining 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Leigh On Sea,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leigh On Sea valuers.
Subsequent to unsuccessful discussions with the landlord of her studio flat in Leigh On Sea, Kelsey started the lease extension process just as her lease was approaching the all-important 80-year deadline. The lease extension was finalised in January 2009. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were approach by Ms J Hill , who bought a newly refurbished flat in Leigh On Sea in July 1996. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparable properties in Leigh On Sea with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed annually. The lease ended on 10 April 2088. Given that there were 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including expenses.
Last November we were phoned by Mr and Mrs. Y Gunderson , who moved into a studio apartment in Leigh On Sea in January 2006. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparable flats in Leigh On Sea with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 billed yearly. The lease finished in 2099. Having 74 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.