Folkestone leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Folkestone will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Folkestone with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Folkestone can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Harry was the the leasehold proprietor of a conversion flat in Folkestone being marketed with a lease of a few days over 61 years unexpired. Harry on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were phoned by Dr Theo Thomas , who acquired a one bedroom apartment in Folkestone in January 2006. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Folkestone with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended in 2090. Taking into account 64 years unexpired we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
Last October we were e-mailed by Dr I King , who moved into a newly refurbished apartment in Folkestone in April 1995. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative properties in Folkestone with an extended lease were worth £270,000. The average amount of ground rent was £55 collected per annum. The lease terminated in 2101. Taking into account 75 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.