The only way is down when it comes to Leigh On Sea lease terms. Leigh On Sea leaseholds that have a residual term shorter than eighty years will reduce in market price even faster, and the cost of extending your lease will increase.
Leasehold residencies in Leigh On Sea with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | 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. |
Regardless of whether you are a tenant or a freeholder in Leigh On Sea,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leigh On Sea valuers.
Arthur was the the leasehold owner of a 2 bedroom apartment in Leigh On Sea being marketed with a lease of fraction over sixty years left. Arthur on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2009 we were called by Mr Leo Parker who, having bought a studio apartment in Leigh On Sea in November 2006. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical premises in Leigh On Sea with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded on 23 November 2093. Given that there were 68 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Summer we were approach by Mr and Mrs. L Bailey , who bought a garden flat in Leigh On Sea in February 2000. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable homes in Leigh On Sea with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 collected quarterly. The lease concluded in 2104. Having 79 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.