The nearer a domestic lease in Margate nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Margate will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Margate with over one hundred years remaining on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Margate can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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 Margate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kyle was the the leasehold proprietor of a high value apartment in Margate on the market with a lease of a little over 72 years left. Kyle on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Kyle to invoke his statutory right. Kyle procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr V Girard purchased a one bedroom apartment in Margate in October 2003. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Identical homes in Margate with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed per annum. The lease elapsed in 2094. Given that there were 68 years unexpired we calculated the premium to the landlord to extend the lease to be between £10,500 and £12,000 not including professional charges.
Mrs Caitlin Wood moved into a purpose-built flat in Margate in January 1996. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Margate with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease concluded on 13 August 2105. Having 79 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.