The closer a domestic lease in Leigh On Sea nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Leigh On Sea will qualify for this right; that being said a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 dealing with 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.
Following unsuccessful correspondence with the freeholder of her studio apartment in Leigh On Sea, Eleanor started the lease extension process as the eighty year threshold was rapidly nearing. The lease extension completed in March 2008. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were called by Mr Y Thompson who, having took over the lease of a purpose-built apartment in Leigh On Sea in March 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Leigh On Sea with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished in 2092. Considering the 67 years left we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of costs.
Mr and Mrs. P Lefèvre acquired a one bedroom flat in Leigh On Sea in October 2011. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Leigh On Sea with 100 year plus lease were worth £280,000. The average ground rent payable was £55 billed monthly. The lease lapsed in 2103. Considering the 78 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.