The only way is down when it comes to Herne Bay lease terms. Herne Bay leaseholds that have a residual term lower than eighty years will drop in market price even faster, and the cost to extend your lease will rise.
Leasehold premises in Herne Bay with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Herne Bay can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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.
In 2014 Jayden, came precariously close to the eighty-year threshold with the lease on his ground floor flat in Herne Bay. In buying his property two decades ago, the length of the lease was of minimal concern. Fortunately, he noticed he needed to take steps soon on Extending the lease. Jayden extended the lease just under the wire in September. Jayden and the landlord ultimately settled on a premium of £6,000 . If the lease had slipped lower than 80 years, the amount would have increased by a minimum £875.
Mr and Mrs. J Khan bought a one bedroom apartment in Herne Bay in August 1997. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Herne Bay with a long lease were valued about £265,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease concluded in 2092. Taking into account 66 years unexpired we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including costs.
Last Christmas we were phoned by Dr Y André , who acquired a first floor flat in Herne Bay in June 1999. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar homes in Herne Bay with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease expiry date was in 2081. Considering the 55 years unexpired we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus legals.