With a domestic leasehold premises in Southend On Sea, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Residents in Southend On Sea with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the relevant legislation the landlord can calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Southend On Sea with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Southend On Sea,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Southend On Sea valuers.
In recent months Kai, came seriously near to the 80-year mark with the lease on his leasehold flat in Southend On Sea. In buying his flat 19 years ago, the lease term was of no concern. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Kai arranged for a lease extension just in the nick of time in March. Kai and the freeholder subsequently settled on the final figure of £5,000 . If he had missed the deadline, the figure would have escalated by at least £1,025.
In 2010 we were contacted by Dr Charlie Green who, having bought a first floor apartment in Southend On Sea in July 2000. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Southend On Sea with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £50 billed monthly. The lease end date was in 2101. Given that there were 75 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
In 2011 we were e-mailed by Mr and Mrs. U Roberts who, having owned a one bedroom flat in Southend On Sea in September 2008. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Southend On Sea with an extended lease were in the region of £250,400. The average ground rent payable was £65 billed quarterly. The lease came to a finish in 2090. Considering the 64 years remaining we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus costs.