When it comes to long leasehold property in Shoeburyness, you are in fact renting it for a certain period of time. These days 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 may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Shoeburyness with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has under eighty years outstanding, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Shoeburyness with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Yorkshire Building Society |
Lease extensions in Shoeburyness can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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.
Ali owned a conversion apartment in Shoeburyness being sold with a lease of a few days over sixty years left. Ali informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last year we were called by Mr and Mrs. P Collins , who moved into a purpose-built flat in Shoeburyness in November 2006. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar residencies in Shoeburyness with an extended lease were worth £257,800. The average amount of ground rent was £65 invoiced per annum. The lease end date was in 2091. Taking into account 65 years left we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of costs.
In 2010 we were contacted by Ms Y Ali who, having was assigned a lease of a newly refurbished flat in Shoeburyness in October 2004. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Shoeburyness with a long lease were worth £196,400. The mid-range amount of ground rent was £55 billed per annum. The lease ran out in 2080. Taking into account 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus legals.