Sheerness leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Sheerness residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Sheerness you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Sheerness,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sheerness valuers.
Two years ago John, came precariously near to the eighty-year mark with the lease on his first floor apartment in Sheerness. Having purchased his home two decades ago, the length of the lease was of no concern. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. John extended the lease at the eleventh hour in May. John and the freeholder eventually agreed on sum of £5,500 . If he had missed the deadline, the price would have gone up by at least £1,075.
Mr Y Kelly took over the lease of a one bedroom flat in Sheerness in November 2011. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable flats in Sheerness with 100 year plus lease were worth £166,800. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2076. Taking into account 50 years left we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.
Last Summer we were phoned by Dr T Ali , who was assigned a lease of a studio flat in Sheerness in May 1998. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable flats in Sheerness with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease expired in 2096. Having 70 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.