Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Westcliff On Sea. Inevitably, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Westcliff On Sea have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give due consideration before delaying your Westcliff On Sea lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold premises in Westcliff On Sea with more than one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
Using our service will provide you enhanced control over the value of your Westcliff On Sea leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her basement apartment in Westcliff On Sea, Catherine initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension was concluded in June 2013. The landlord’s charges were restricted to a tad over 700 pounds.
Last year we were contacted by Mrs S Jackson , who bought a newly refurbished apartment in Westcliff On Sea in August 2010. We are asked if we could estimate the price could be for a ninety year lease extension. Similar homes in Westcliff On Sea with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected quarterly. The lease expired in 2087. Considering the 61 years left we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.
Dr S Murphy moved into a recently refurbished flat in Westcliff On Sea in March 2000. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Westcliff On Sea with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 billed yearly. The lease concluded in 2098. Given that there were 72 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.