The market value of a leasehold property in Shoeburyness depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year cut off point. Current legislation entitles Shoeburyness qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Shoeburyness with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Nathaniel owned a high value apartment in Shoeburyness on the market with a lease of fraction over fifty eight years unexpired. Nathaniel on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Last Summer we were e-mailed by Mr and Mrs. J Johnson , who was assigned a lease of a studio flat in Shoeburyness in August 2012. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Shoeburyness with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish on 12 May 2103. Having 77 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
Last year we were approach by Dr J Ali , who moved into a recently refurbished flat in Shoeburyness in November 2002. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Shoeburyness with a long lease were in the region of £265,200. The average amount of ground rent was £65 billed monthly. The lease lapsed on 10 August 2092. Taking into account 66 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus professional charges.