With a residential leasehold property in Mersea Island, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Anyone in Mersea Island with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Mersea Island can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.
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.
Following protracted negotiations with the freeholder of her ground floor flat in Mersea Island, Naomi initiated the lease extension process as the eighty year mark was fast advancing. The legal work was finalised in March 2008. The landlord’s fees were restricted to about 650 GBP.
Last Christmas we were e-mailed by Mrs C Lee , who bought a first floor apartment in Mersea Island in January 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Mersea Island with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 billed annually. The lease elapsed in 2084. Given that there were 59 years left we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus expenses.
Mr and Mrs. H Peterson took over the lease of a basement apartment in Mersea Island in January 1995. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Mersea Island with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out on 26 August 2095. Considering the 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 plus fees.