The re-sale value of a leasehold property in Southend On Sea is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed in advance of the eighty year threshold. Leasehold Reform legislation entitles Southend On Sea qualifying lessees to an additional term of ninety years on top of the existing term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Southend On Sea can be a difficult process. We recommend you get professional help from a conveyancer 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 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.
Connor owned a high value apartment in Southend On Sea on the market with a lease of a few days over 61 years left. Connor informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were e-mailed by Dr Sam Alexander who, having purchased a first floor apartment in Southend On Sea in October 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Southend On Sea with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 billed annually. The lease concluded in 2099. Given that there were 73 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last Summer we were called by Mrs Kayleigh Rivera , who owned a newly refurbished apartment in Southend On Sea in October 1995. We are asked if we could estimate the price would be for a 90 year lease extension. Identical residencies in Southend On Sea with an extended lease were in the region of £235,600. The average ground rent payable was £60 billed quarterly. The lease expired on 4 January 2088. Considering the 62 years unexpired we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.