When it comes to domestic leasehold property in Shoeburyness, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in Shoeburyness with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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.
In recent months Ben, came precariously near to the 80-year mark with the lease on his basement apartment in Shoeburyness. Having purchased his property two decades ago, the unexpired term was of little concern. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Ben arranged for a lease extension at the eleventh hour last April. Ben and the landlord in the end settled on the final figure of £6,000 . If the lease had slid lower than eighty years, the premium would have escalated by at least £875.
Last Summer we were e-mailed by Mr and Mrs. V Patel , who purchased a one bedroom flat in Shoeburyness in January 2009. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Shoeburyness with an extended lease were worth £205,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 7 October 2105. Considering the 79 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Last Summer we were contacted by Mrs Jordan Gunderson , who took over the lease of a garden apartment in Shoeburyness in November 1995. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in Shoeburyness with a long lease were worth £275,000. The average ground rent payable was £65 billed monthly. The lease finished on 1 January 2094. Taking into account 68 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.