It’s an underpublicised certainty that a Southend On Sea residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Southend On Sea property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. Most flat owners in Southend On Sea will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Southend On Sea can be a difficult process. We recommend you procure professional help from a conveyancer 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 dealing with Southend On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jacob, started to get near to the eighty-year mark with the lease on his basement apartment in Southend On Sea. In buying his property 19 years ago, the lease term was of little significance. Thankfully, he recognised he needed to take action soon on a lease extension. Jacob extended the lease just under the wire last April. Jacob and the freeholder eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £975.
Last year we were contacted by Mr and Mrs. J Brown , who bought a recently refurbished flat in Southend On Sea in February 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Southend On Sea with an extended lease were worth £201,200. The average ground rent payable was £55 invoiced quarterly. The lease concluded in 2081. Having 56 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.
Dr Freddie Roux purchased a newly refurbished flat in Southend On Sea in November 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable flats in Southend On Sea with a long lease were worth £300,000. The average amount of ground rent was £50 invoiced yearly. The lease expiry date was in 2101. Considering the 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.