Herne Bay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Herne Bay enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Herne Bay you really ought to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Herne Bay with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Herne Bay can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 Herne Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her purpose-built apartment in Herne Bay, Rebecca commenced the lease extension process as the 80 year deadline was rapidly nearing. The lease extension was concluded in September 2014. The freeholder’s charges were negotiated to under 650 GBP.
Dr Alexander Ricardo took over the lease of a one bedroom apartment in Herne Bay in October 1997. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Herne Bay with an extended lease were valued around £206,200. The average ground rent payable was £55 collected per annum. The lease ran out on 18 March 2081. Having 56 years remaining we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.
Last August we were e-mailed by Dr Daisy Clark , who completed a newly refurbished apartment in Herne Bay in May 2012. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical homes in Herne Bay with 100 year plus lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease terminated in 2101. Considering the 76 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.