It’s a harsh certainty that a Sheerness residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Sheerness property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Sheerness will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Sheerness leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Oscar was the the leasehold owner of a studio flat in Sheerness on the market with a lease of a little over 72 years left. Oscar on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last May we were phoned by Mr and Mrs. V Simon , who moved into a studio flat in Sheerness in September 1996. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar properties in Sheerness with an extended lease were valued around £250,400. The mid-range ground rent payable was £65 billed yearly. The lease end date was in 2089. Taking into account 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including fees.
Mr and Mrs. R Scott moved into a basement flat in Sheerness in February 2006. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Sheerness with a long lease were worth £184,000. The mid-range ground rent payable was £55 invoiced per annum. The lease expired on 23 September 2078. Taking into account 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.