Chances are that if you own a flat in Southend On Sea you actually own a long leasehold interest over your property
Leasehold residencies in Southend On Sea with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
Lease extensions in Southend On Sea can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 in-depth market knowledge procuring 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.
Following unsuccessful negotiations with the freeholder of her first floor apartment in Southend On Sea, Olivia started the lease extension process as the eighty year threshold was rapidly approaching. The lease extension was concluded in September 2012. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were approach by Mr and Mrs. U Davies , who bought a purpose-built flat in Southend On Sea in March 2002. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical flats in Southend On Sea with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease finished in 2086. Considering the 61 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 not including legals.
Last year we were phoned by Ms Sarah Gray , who acquired a recently refurbished flat in Southend On Sea in April 1997. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparative homes in Southend On Sea with an extended lease were worth £166,800. The average amount of ground rent was £50 collected every twelve months. The lease ended on 6 May 2075. Given that there were 50 years left we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.