When it comes to domestic leasehold property in Southend On Sea, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Southend On Sea with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When a lease has below 80 years outstanding, under the current legislation the freeholder can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Southend On Sea with more than one hundred years remaining 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Southend On Sea can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 in-depth market knowledge 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.
Last year Felix, started to get near to the eighty-year threshold with the lease on his first floor flat in Southend On Sea. In buying his home two decades ago, the unexpired term was of little interest. Luckily, he realised he needed to take action soon on a lease extension. Felix extended the lease at the eleventh hour in June. Felix and the freeholder via the management company subsequently agreed on sum of £6,000 . If he had missed the deadline, the premium would have become more costly by a minimum £875.
Dr Connor Wilson took over the lease of a purpose-built apartment in Southend On Sea in April 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Southend On Sea with a long lease were worth £184,000. The mid-range amount of ground rent was £55 collected per annum. The lease finished in 2078. Considering the 53 years unexpired we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.
Last Summer we were contacted by Mr and Mrs. U Hernández , who owned a one bedroom flat in Southend On Sea in August 2004. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Southend On Sea with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expiry date was in 2098. Taking into account 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.