Folkestone leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Leasehold owners in Folkestone will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Folkestone with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Using our service will provide you better control over the value of your Folkestone leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her basement flat in Folkestone, Phoebe commenced the lease extension process just as her lease was nearing the crucial eighty-year deadline. The transaction was concluded in January 2014. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. T Gunderson , who took over the lease of a basement flat in Folkestone in August 2004. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable premises in Folkestone with an extended lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed on 12 April 2094. Given that there were 68 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2012 we were contacted by Mr T Thomas who, having took over the lease of a basement flat in Folkestone in August 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Folkestone with a long lease were worth £285,000. The average ground rent payable was £55 invoiced annually. The lease expired on 6 March 2105. Given that there were 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.