Unfortunately that a Herne Bay residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Herne Bay property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Herne Bay will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Herne Bay,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Herne Bay valuers.
Last year Lewis, started to get close to the eighty-year threshold with the lease on his garden apartment in Herne Bay. Having purchased his flat 18 years previously, the length of the lease was of no significance. Thankfully, he recognised he needed to take action soon on a lease extension. Lewis arranged for a lease extension just ahead of time in May. Lewis and the freeholder via the management company in the end settled on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by at least £1,100.
Mr and Mrs. D Turner moved into a first floor flat in Herne Bay in November 2004. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Herne Bay with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease ended on 23 May 2104. Taking into account 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
Dr K Richardson took over the lease of a garden apartment in Herne Bay in September 1997. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Herne Bay with a long lease were worth £267,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed on 15 July 2093. Considering the 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.