Faversham leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Faversham will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB |
The conveyancers that we work with handle Faversham 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.
In the wake of eight months of lengthy correspondence with the freeholder of her first floor apartment in Faversham, Katie commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was finalised in January 2005. The freeholder’s fees were restricted to below 550 GBP.
Last month we were phoned by Dr Henry Mitchell , who acquired a first floor flat in Faversham in January 2000. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Faversham with a long lease were valued about £191,400. The average amount of ground rent was £55 collected every twelve months. The lease concluded on 17 May 2080. Having 54 years remaining we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of legals.
In 2012 we were e-mailed by Mr and Mrs. R Williams who, having took over the lease of a one bedroom flat in Faversham in March 2011. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical residencies in Faversham with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished on 16 October 2100. Considering the 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.