The market value of Shoeburyness 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 escalate materialy once the unexpired lease term is below than eighty years
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Shoeburyness lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing protracted correspondence with the freeholder of her first floor apartment in Shoeburyness, Eleanor commenced the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was finalised in July 2009. The landlord’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. C Thomas who, having bought a one bedroom apartment in Shoeburyness in April 2000. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Shoeburyness with a long lease were valued about £295,000. The mid-range ground rent payable was £45 collected every twelve months. The lease expiry date was on 23 May 2099. Taking into account 74 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2014 we were contacted by Mr Riley King who, having acquired a purpose-built flat in Shoeburyness in May 2001. The question was if we could estimate the premium would be for a ninety year lease extension. Similar properties in Shoeburyness with 100 year plus lease were in the region of £248,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out on 3 September 2088. Given that there were 63 years as a residual term we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.