With a domestic leasehold property in Shanklin, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Leasehold owners in Shanklin with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has less than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| TSB | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service gives you increased control over the value of your Shanklin leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dexter, came seriously close to the eighty-year mark with the lease on his one bedroom flat in Shanklin. Having purchased his property 19 years previously, the length of the lease was of little significance. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Dexter extended the lease at the eleventh hour in March. Dexter and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £1,000.
In 2013 we were e-mailed by Mr and Mrs. R David who, having was assigned a lease of a garden apartment in Shanklin in November 2003. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable residencies in Shanklin with a long lease were valued about £270,000. The average ground rent payable was £55 billed every twelve months. The lease terminated on 21 February 2101. Considering the 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. U Lefebvre completed a one bedroom flat in Shanklin in May 2000. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Shanklin with a long lease were worth £173,800. The average ground rent payable was £60 invoiced per annum. The lease finished on 9 April 2081. Taking into account 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.