With a domestic leasehold premises in Mersea Island, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Residents in Mersea Island with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When a lease has fewer than 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Mersea Island with in excess of one hundred years left 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | 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. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Mersea Island leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her two bedroom apartment in Mersea Island, Jade started the lease extension process as the 80 year deadline was rapidly nearing. The transaction was finalised in November 2012. The landlord’s fees were restricted to under 650 GBP.
In 2014 we were approached by Mr I Leroy who, having acquired a newly refurbished apartment in Mersea Island in November 2011. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar premises in Mersea Island with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated in 2103. Given that there were 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
Dr Courtney Rivera moved into a garden apartment in Mersea Island in November 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Mersea Island with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed every twelve months. The lease ran out on 21 March 2083. Considering the 58 years unexpired we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of professional charges.