Top reasons for Margate lease extension

Top reasons for lease extension now:

Increase your lease and increase your Margate property value

The value of Margate leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than eighty years

Margate property with a lease extension is almost the same value as a freehold

Leasehold premises in Margate with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.

Mortgage lenders may decide not to finance a property with a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years left to run - although this varies from lender to lender. A buyer will no doubt find it difficult in obtaining a mortgage and this could result in your Margate property becoming difficult to dispose of or refinance.

Get in touch with one of our Margate lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Margate,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Margate valuers.

Margate Lease Extension Example Cases:

Theo, Margate, Kent

In 2014 Theo, came precariously close to the eighty-year threshold with the lease on his leasehold apartment in Margate. Having bought his home twenty years ago, the unexpired term was of minimal concern. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Theo was able to extend his lease just in the nick of time in June. Theo and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If he not met the deadline, the price would have become more costly by at least £1,150.

Margate case:

Last Autumn we were called by Mr and Mrs. V Richardson , who owned a recently refurbished flat in Margate in March 2011. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Margate with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected monthly. The lease ended in 2101. Having 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.

Margate case:

Mr and Mrs. H Miller completed a purpose-built flat in Margate in February 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Margate with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed on 12 February 2081. Having 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including fees.