As the the remaining lease term of a Folkestone domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Folkestone will qualify for this right; nevertheless a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Retaining our service will provide you increased control over the value of your Folkestone leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Harrison, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Folkestone. In buying his home 18 years previously, the lease term was of little bearing. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Harrison was able to extend his lease just ahead of time in June. Harrison and the freeholder subsequently agreed on the final figure of £5,000 . If he not met the deadline, the price would have increased by a minimum £1,125.
Last Summer we were contacted by Mrs N Parker , who moved into a basement apartment in Folkestone in November 2005. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical homes in Folkestone with an extended lease were worth £208,200. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 16 February 2087. Having 61 years outstanding we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.
Last August we were called by Mrs H García , who purchased a ground floor flat in Folkestone in August 1996. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable flats in Folkestone with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed in 2098. Having 72 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.