Unfortunately that a Isle of Sheppey residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Isle of Sheppey property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. Most flat owners in Isle of Sheppey will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Isle of Sheppey with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Isle of Sheppey can be a difficult process. We recommend you obtain professional help 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 Isle of Sheppey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor was the the leasehold owner of a 2 bedroom apartment in Isle of Sheppey on the market with a lease of fraction over fifty eight years unexpired. Connor on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last May we were approach by Mr T Alexander , who acquired a purpose-built apartment in Isle of Sheppey in September 2005. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in Isle of Sheppey with 100 year plus lease were valued about £240,600. The average amount of ground rent was £60 billed annually. The lease ended on 7 February 2088. Considering the 62 years remaining we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.
Last Autumn we were approach by Mr Jackson Khan , who bought a studio apartment in Isle of Sheppey in August 1998. The question was if we could estimate the premium could be to extend the lease by ninety years. Comparable flats in Isle of Sheppey with a long lease were valued around £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease expired on 12 April 2077. Considering the 51 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.