Southend On Sea leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Southend On Sea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Southend On Sea you would be well advised to check if your lease has between seventy and 90 years left. There are compelling reasons why a Southend On Sea leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Southend On Sea with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Engaging our service gives you enhanced control over the value of your Southend On Sea leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors 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 one bedroom flat in Southend On Sea, Maisie initiated the lease extension process just as the lease was approaching the all-important 80-year deadline. The legal work was finalised in August 2013. The landlord’s charges were kept to an absolute minimum.
Last Summer we were e-mailed by Mr A Mercier , who was assigned a lease of a ground floor apartment in Southend On Sea in September 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative residencies in Southend On Sea with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 billed yearly. The lease terminated in 2096. Given that there were 70 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2013 we were phoned by Mr and Mrs. B Gray who, having owned a basement flat in Southend On Sea in July 1996. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Southend On Sea with 100 year plus lease were worth £218,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished on 24 July 2085. Considering the 59 years as a residual term we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of fees.