On the balance of probabilities where you own a flat in Sheerness you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sheerness can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
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.
Noah was the the leasehold proprietor of a studio flat in Sheerness on the market with a lease of fraction over 72 years unexpired. Noah informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Christmas we were called by Dr F Michel , who was assigned a lease of a ground floor apartment in Sheerness in March 1999. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Sheerness with an extended lease were valued about £181,600. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish on 19 April 2078. Having 52 years left we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.
Last Christmas we were phoned by Mr Austin Parker , who acquired a garden flat in Sheerness in February 2011. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical properties in Sheerness with a long lease were valued around £285,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish in 2098. Taking into account 72 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.