With a long leasehold property in Sheerness, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long 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 particularly once there are fewer than eighty years left. Anyone in Sheerness with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once a lease has fewer than eighty years left, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Sheerness with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Sheerness can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Sheerness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake was the the leasehold owner of a conversion apartment in Sheerness being marketed with a lease of a few days over 72 years remaining. Blake on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2014 we were contacted by Dr Luke Cox who, having bought a first floor apartment in Sheerness in September 1996. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Sheerness with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 collected quarterly. The lease finished on 17 September 2085. Taking into account 59 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of fees.
In 2014 we were phoned by Ms Katherine Roux who, having was assigned a lease of a basement flat in Sheerness in April 1997. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable flats in Sheerness with a long lease were valued about £205,000. The average ground rent payable was £50 billed annually. The lease came to a finish in 2105. Taking into account 79 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.