The market value of Mersea Island leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Mersea Island can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 dealing with 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.
During the course of the last few months Sam, came very close to the 80-year threshold with the lease on his garden apartment in Mersea Island. In buying his flat 18 years ago, the length of the lease was of no importance. by good luck, he recognised he needed to take steps soon on a lease extension. Sam extended the lease at the eleventh hour last March. Sam and the landlord in the end agreed on a premium of £5,000 . If the lease had dipped lower than eighty years, the sum would have escalated by a minimum £1,025.
In 2012 we were phoned by Mr and Mrs. O Simon who, having moved into a basement apartment in Mersea Island in April 2007. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical residencies in Mersea Island with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2076. Considering the 50 years as a residual term we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of costs.
Last Autumn we were approach by Dr Y Flores , who purchased a ground floor apartment in Mersea Island in July 1996. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Mersea Island with an extended lease were in the region of £208,200. The mid-range ground rent payable was £65 billed per annum. The lease lapsed in 2087. Having 61 years remaining we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus professional charges.