It’s a harsh certainty that a Shoeburyness residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Shoeburyness property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Shoeburyness will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| TSB |
Lease extensions in Shoeburyness can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Shoeburyness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Owen, came precariously close to the eighty-year mark with the lease on his ground floor apartment in Shoeburyness. In buying his flat two decades ago, the unexpired term was of no importance. As luck would have it, he realised he would imminently be paying an escalated premium for a lease extension. Owen extended the lease at the eleventh hour last August. Owen and the landlord ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the price would have increased by at least £1,075.
In 2012 we were contacted by Dr K Alexander who, having took over the lease of a recently refurbished flat in Shoeburyness in September 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Shoeburyness with a long lease were valued around £189,000. The average amount of ground rent was £55 invoiced yearly. The lease ran out on 3 August 2079. Considering the 53 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Last February we were approach by Mr and Mrs. E Lambert , who purchased a basement flat in Shoeburyness in July 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Shoeburyness with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed yearly. The lease elapsed in 2099. Having 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.