On the balance of probabilities if you own a flat in Folkestone you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Folkestone can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience procuring Folkestone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Seth, started to get near to the 80-year threshold with the lease on his studio apartment in Folkestone. In buying his property two decades ago, the length of the lease was of little interest. Luckily, he became aware that he needed to take action soon on Extending the lease. Seth arranged for a lease extension just ahead of time in May. Seth and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If he had missed the deadline, the price would have increased by at least £925.
In 2010 we were phoned by Ms E Garcia who, having was assigned a lease of a studio apartment in Folkestone in April 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Folkestone with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease ended in 2079. Taking into account 54 years left we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including professional charges.
In 2013 we were approached by Mr and Mrs. D Khan who, having bought a one bedroom apartment in Folkestone in November 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Folkestone with a long lease were valued around £227,800. The average ground rent payable was £45 collected yearly. The lease terminated on 6 May 2090. Given that there were 65 years left we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.