Chances are that if you own a flat in Shoeburyness you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 also be not less than 75 years 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. |
Retaining our service will provide you enhanced control over the value of your Shoeburyness leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold proprietor of a conversion apartment in Shoeburyness being marketed with a lease of just over 72 years remaining. Cameron informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last year we were contacted by Mr and Mrs. C Murphy , who moved into a first floor apartment in Shoeburyness in August 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Shoeburyness with a long lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease expired in 2092. Taking into account 67 years outstanding we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
Last November we were approach by Ms M Young , who completed a basement flat in Shoeburyness in August 1997. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical homes in Shoeburyness with 100 year plus lease were valued about £206,200. The average amount of ground rent was £60 billed annually. The lease expiry date was in 2081. Having 56 years unexpired we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus expenses.