The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Margate may extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Margate lease extension. Shelving the costs now simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold properties in Margate with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Margate,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Margate valuers.
Last Spring Ali, started to get near to the eighty-year mark with the lease on his one bedroom flat in Margate. Having purchased his home two decades ago, the unexpired term was of little significance. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Ali extended the lease just in the nick of time last March. Ali and the freeholder via the management company ultimately settled on the final figure of £6,000 . If the lease had descended below eighty years, the sum would have gone up by a minimum £1,125.
Mr Blake Gómez was assigned a lease of a first floor apartment in Margate in January 1996. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Identical premises in Margate with a long lease were valued around £290,000. The average ground rent payable was £60 invoiced per annum. The lease terminated in 2106. Having 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
In 2011 we were approached by Mr and Mrs. H Hernández who, having moved into a studio flat in Margate in August 2012. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparable premises in Margate with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease ended on 15 June 2086. Taking into account 60 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including costs.