The nearer a domestic lease in Sandgate gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 125 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Sandgate will meet the qualifying criteria; however a lawyer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Sandgate with more than one hundred years outstanding on the lease are sometimes referred to as ‘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 warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| TSB | |
| The Mortgage Works |
The lawyers that we work with procure Sandgate 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 lawyer we work with provide it.
Muhammad was the the leasehold proprietor of a 2 bedroom flat in Sandgate being marketed with a lease of a little over sixty years outstanding. Muhammad informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
In 2014 we were contacted by Mr Ali Ricardo who, having was assigned a lease of a one bedroom apartment in Sandgate in November 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Sandgate with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease came to a finish in 2097. Having 71 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mrs R Brown bought a studio apartment in Sandgate in January 2012. We are asked if we could estimate the price could be for a ninety year lease extension. Identical homes in Sandgate with an extended lease were valued around £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease elapsed in 2077. Having 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including costs.