For anyone whose Isle of Sheppey property is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold properties in Isle of Sheppey with over 100 years outstanding 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| TSB | |
| Yorkshire Building Society |
Using our service will provide you better control over the value of your Isle of Sheppey leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a conversion apartment in Isle of Sheppey being marketed with a lease of just over 59 years left. Jackson on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. A Roberts who, having bought a garden flat in Isle of Sheppey in June 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable flats in Isle of Sheppey with a long lease were in the region of £181,600. The average amount of ground rent was £55 billed per annum. The lease expired in 2078. Considering the 52 years outstanding we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
Dr Kelsey Petit owned a garden apartment in Isle of Sheppey in July 1995. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative homes in Isle of Sheppey with a long lease were in the region of £290,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 18 February 2098. Having 72 years remaining we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.