The value of Southend On Sea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is below than 80 years
Leasehold properties in Southend On Sea with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
Lease extensions in Southend On Sea can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
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 dealing with Southend On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Matthew, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Southend On Sea. Having purchased his property two decades ago, the lease term was of minimal relevance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Matthew extended the lease just under the wire in July. Matthew and the freeholder via the management company subsequently settled on sum of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £900.
Dr Molly Campbell took over the lease of a one bedroom apartment in Southend On Sea in January 2004. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical flats in Southend On Sea with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 21 February 2092. Considering the 66 years unexpired we calculated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including costs.
Mr and Mrs. J Johnson was assigned a lease of a garden flat in Southend On Sea in April 2009. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Southend On Sea with an extended lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded in 2081. Taking into account 55 years outstanding we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of expenses.