Southend On Sea leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Southend On Sea will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Southend On Sea,the lease extension experts 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 Southend On Sea valuers.
Dexter was the the leasehold proprietor of a conversion flat in Southend On Sea being sold with a lease of fraction over 59 years outstanding. Dexter on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last year we were called by Ms Eleanor Morris , who was assigned a lease of a garden flat in Southend On Sea in August 2010. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Southend On Sea with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated in 2100. Taking into account 74 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Mr and Mrs. C López purchased a garden flat in Southend On Sea in March 2001. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Southend On Sea with an extended lease were in the region of £243,000. The average amount of ground rent was £65 billed every twelve months. The lease expired in 2089. Taking into account 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.