Main reasons to start your Margate lease extension

Top reasons for lease extension now:

A Margate leasehold property depreciates with the years remaining on the lease.

It’s a harsh truth that a Margate residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Margate property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Margate will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.

Margate property with a lease extension has roughly the same value as a freehold

Leasehold properties in Margate with more than 100 years outstanding 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 service charges justify it.

Lending institutions may not finance a property with a short lease

Almost all mortgage companies insist on a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should bear in mind that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so if they can't obtain a mortgage, then the value of your property will likely be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

The conveyancers that we work with handle Margate lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Margate Lease Extension Example Cases:

Natalie, Margate, Kent,

Trailing protracted correspondence with the freeholder of her basement flat in Margate, Natalie initiated the lease extension process as the 80 year deadline was fast coming. The transaction completed in June 2013. The freeholder’s fees were restricted to approximately six hundred GBP.

Margate case:

Mr W Díaz bought a garden flat in Margate in May 1997. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative residencies in Margate with 100 year plus lease were valued around £242,600. The average amount of ground rent was £45 invoiced quarterly. The lease ran out on 14 September 2093. Given that there were 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.

Margate case:

Mr F Bertrand purchased a one bedroom apartment in Margate in May 2007. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparative residencies in Margate with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced yearly. The lease ended on 9 May 2104. Considering the 78 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.