When it comes to long leasehold premises in Shanklin, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Shanklin with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has less than 80 years remaining, under the relevant Act the freeholder can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society |
The conveyancing solicitors that we work with undertake Shanklin 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.
Last Christmas Luke, started to get near to the 80-year threshold with the lease on his ground floor apartment in Shanklin. In buying his home two decades ago, the lease term was of little importance. by good luck, he realised he would soon be paying way over the odds for a lease extension. Luke was able to extend his lease just ahead of time in May. Luke and the freeholder subsequently agreed on an amount of £5,500 . If he had missed the deadline, the price would have escalated by at least £925.
In 2013 we were approached by Mr and Mrs. C Morgan who, having bought a basement flat in Shanklin in March 2002. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable flats in Shanklin with 100 year plus lease were valued around £218,000. The average ground rent payable was £45 billed yearly. The lease ended on 7 September 2089. Given that there were 63 years outstanding we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including fees.
In 2014 we were called by Dr D Turner who, having moved into a ground floor flat in Shanklin in April 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Shanklin with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded in 2100. Considering the 74 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.