Mersea Island leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Mersea Island tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Mersea Island you should see if your lease has between 70 and 90 years remaining. There are good reasons why a Mersea Island leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Mersea Island,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mersea Island valuers.
During the course of the last few months Omar, started to get close to the eighty-year mark with the lease on his purpose- built flat in Mersea Island. In buying his flat twenty years ago, the lease term was of minimal bearing. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. Omar was able to extend his lease just ahead of time last September. Omar and the landlord ultimately agreed on the final figure of £6,000 . If the lease had descended below 80 years, the sum would have increased by at least £1,000.
In 2012 we were phoned by Mr and Mrs. H Bell who, having took over the lease of a recently refurbished apartment in Mersea Island in July 1995. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical properties in Mersea Island with a long lease were worth £176,200. The average ground rent payable was £65 invoiced per annum. The lease elapsed on 11 February 2080. Taking into account 56 years left we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.
In 2014 we were approached by Mr and Mrs. R Simon who, having took over the lease of a ground floor flat in Mersea Island in July 1999. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable premises in Mersea Island with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease end date was on 24 May 2091. Considering the 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.