As the length of the unexpired term of a Mersea Island residential lease diminished so does its value and therefore the value of your property. If the lease has, over 125 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Mersea Island will qualify for this right; nevertheless a conveyancer should be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Mersea Island with over 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
|Bank of Scotland||Minimum 70 years from the date 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.
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Lease extensions in Mersea Island can be a difficult process. We recommend you secure professional help from a lawyer 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 Mersea Island lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her one bedroom flat in Mersea Island, Caitlin started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The lease extension completed in July 2007. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were approach by Dr Alfie Howard , who completed a one bedroom apartment in Mersea Island in September 2011. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Mersea Island with a long lease were worth £200,800. The average amount of ground rent was £65 invoiced monthly. The lease ended in 2081. Taking into account 60 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus expenses.
In 2011 we were approached by Dr A Brooks who, having completed a purpose-built flat in Mersea Island in March 2010. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical homes in Mersea Island with a long lease were valued around £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease came to a finish in 2092. Given that there were 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.