Mersea Island leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Mersea Island will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Mersea Island can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Mersea Island lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Austin, started to get near to the 80-year threshold with the lease on his first floor apartment in Mersea Island. Having bought his property two decades ago, the unexpired term was of little bearing. by good luck, he became aware that he needed to take action soon on a lease extension. Austin was able to extend his lease just ahead of time last June. Austin and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If the lease had fallen lower than eighty years, the price would have become more costly by at least £975.
Mr and Mrs. N González was assigned a lease of a one bedroom flat in Mersea Island in September 2000. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Mersea Island with an extended lease were in the region of £265,000. The average amount of ground rent was £50 invoiced annually. The lease ran out on 16 February 2098. Considering the 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2012 we were called by Mr and Mrs. J Carter who, having completed a first floor flat in Mersea Island in November 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Mersea Island with an extended lease were in the region of £264,000. The average ground rent payable was £60 collected monthly. The lease elapsed in 2078. Considering the 53 years left we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of legals.