It’s an underpublicised truth that a Southend On Sea residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Southend On Sea property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Southend On Sea will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Southend On Sea with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Santander |
Irrespective of whether you are a tenant or a freeholder in Southend On Sea,the lease extension solicitors 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.
Harvey was the the leasehold proprietor of a conversion flat in Southend On Sea being marketed with a lease of a little over 59 years left. Harvey informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Christmas we were e-mailed by Dr Lydia Williams , who acquired a one bedroom flat in Southend On Sea in October 1999. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Southend On Sea with an extended lease were valued about £218,400. The mid-range ground rent payable was £60 collected per annum. The lease finished on 8 February 2085. Given that there were 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of costs.
In 2009 we were contacted by Mr and Mrs. F Gunderson who, having acquired a basement flat in Southend On Sea in June 2005. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Southend On Sea with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 collected yearly. The lease ran out on 21 October 2105. Having 79 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.