Chances are that where you own a flat in Southend On Sea you actually own a long leasehold interest over your property
Leasehold premises in Southend On Sea with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Southend On Sea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Hugo owned a 2 bedroom flat in Southend On Sea being marketed with a lease of just over 61 years unexpired. Hugo on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last March we were e-mailed by Mr and Mrs. F Morgan , who completed a first floor flat in Southend On Sea in September 2009. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Southend On Sea with a long lease were worth £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed on 25 May 2103. Considering the 78 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Dr E Richardson was assigned a lease of a garden apartment in Southend On Sea in June 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Southend On Sea with a long lease were worth £267,600. The average amount of ground rent was £65 billed monthly. The lease expired on 10 January 2092. Having 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of legals.