Margate leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Margate will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society |
Retaining our service gives you enhanced control over the value of your Margate leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Zachary owned a conversion flat in Margate being marketed with a lease of fraction over sixty years outstanding. Zachary informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Ms E Scott completed a first floor flat in Margate in August 2005. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative homes in Margate with a long lease were worth £218,000. The average ground rent payable was £45 collected yearly. The lease came to a finish in 2089. Taking into account 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.
In 2013 we were e-mailed by Dr V Edwards who, having completed a studio flat in Margate in April 2002. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Margate with an extended lease were valued about £270,000. The average ground rent payable was £55 invoiced yearly. The lease ended on 13 September 2100. Given that there were 74 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.