Sheerness leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Sheerness enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sheerness you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Sheerness flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Sheerness with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Sheerness leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her purpose-built apartment in Sheerness, Chantelle commenced the lease extension process just as her lease was nearing the critical eighty-year deadline. The transaction completed in March 2011. The freeholder’s costs were kept to an absolute minimum.
Dr O Collins completed a basement flat in Sheerness in April 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Sheerness with an extended lease were worth £200,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish on 16 October 2104. Having 78 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
In 2013 we were contacted by Mr and Mrs. V Morris who, having owned a first floor flat in Sheerness in October 1999. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical residencies in Sheerness with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 billed yearly. The lease terminated on 13 April 2093. Taking into account 67 years left we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of expenses.