Chances are that if you own a flat in Southend On Sea you actually own a long leasehold interest over your property
Leasehold properties in Southend On Sea with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers that we work with handle Southend On Sea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her garden apartment in Southend On Sea, Kayleigh initiated the lease extension process just as her lease was nearing the critical eighty-year deadline. The lease extension completed in July 2015. The landlord’s charges were restricted to below 450 GBP.
Mr and Mrs. D Kelly purchased a one bedroom flat in Southend On Sea in November 2012. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable premises in Southend On Sea with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 billed per annum. The lease terminated in 2078. Having 52 years remaining we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.
Mr and Mrs. O Edwards was assigned a lease of a garden apartment in Southend On Sea in May 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Southend On Sea with a long lease were valued around £285,000. The mid-range ground rent payable was £45 billed per annum. The lease termination date was on 24 August 2098. Given that there were 72 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.