The nearer a domestic lease in Shoeburyness nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Shoeburyness will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Shoeburyness,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shoeburyness valuers.
Off the back of protracted negotiations with the landlord of her studio flat in Shoeburyness, Paige started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The transaction completed in July 2009. The freeholder’s costs were restricted to about 450 pounds.
Ms Madeleine Walker completed a purpose-built flat in Shoeburyness in January 1997. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Shoeburyness with an extended lease were valued about £240,600. The average amount of ground rent was £60 collected monthly. The lease elapsed on 21 May 2087. Considering the 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.
Mr and Mrs. K Taylor purchased a garden flat in Shoeburyness in February 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Shoeburyness with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed in 2076. Considering the 51 years unexpired we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.