The market value of Southend On Sea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
Leasehold premises in Southend On Sea with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Nationwide Building Society | |
| The Mortgage Works |
Engaging our service gives you better control over the value of your Southend On Sea leasehold, as your property will be more valuable and marketable in terms of lease length should you decide 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 lengthy correspondence with the landlord of her purpose-built flat in Southend On Sea, Megan started the lease extension process as the 80 year deadline was swiftly nearing. The lease extension completed in November 2013. The freeholder’s costs were negotiated to about 550 pounds.
In 2014 we were contacted by Mrs Isabella Mercier who, having owned a garden flat in Southend On Sea in March 2011. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical premises in Southend On Sea with an extended lease were valued about £205,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed in 2105. Having 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
Dr E Ali bought a recently refurbished apartment in Southend On Sea in January 1995. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Southend On Sea with a long lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced annually. The lease finished on 21 June 2094. Considering the 68 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.