The nearer a domestic lease in Sheerness gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 125 years to run then this decrease may be negligible nevertheless 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 increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Sheerness will meet the qualifying criteria; however a lawyer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Sheerness can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 dealing with Sheerness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her garden apartment in Sheerness, Millie initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The legal work was finalised in June 2006. The freeholder’s fees were negotiated to a tad over 500 GBP.
Last Spring we were called by Ms Chloe Martin , who was assigned a lease of a basement apartment in Sheerness in June 1995. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Sheerness with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 collected per annum. The lease expiry date was on 15 November 2080. Having 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus legals.
Last Autumn we were approach by Mr and Mrs. E Vincent , who completed a one bedroom apartment in Sheerness in June 2003. The question was if we could approximate the price would be to prolong the lease by 90 years. Similar properties in Sheerness with an extended lease were valued about £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease expired in 2100. Considering the 74 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.