Benfleet leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Benfleet will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Benfleet,the lease extension experts 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 Benfleet valuers.
Following protracted correspondence with the landlord of her ground floor apartment in Benfleet, Poppy initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction was finalised in September 2013. The landlord’s fees were restricted to under 700 GBP.
Last Summer we were phoned by Mr and Mrs. T Hill , who moved into a ground floor apartment in Benfleet in July 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar properties in Benfleet with 100 year plus lease were valued around £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed in 2077. Given that there were 52 years left we estimated the premium to the landlord to extend the lease to be within £41,800 and £48,400 exclusive of costs.
In 2010 we were e-mailed by Mr and Mrs. M García who, having moved into a studio flat in Benfleet in November 2000. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Benfleet with a long lease were valued around £218,000. The average amount of ground rent was £45 collected per annum. The lease expiry date was in 2088. Taking into account 63 years left we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.