The re-sale value of a leasehold property in Sheerness depends on how many years the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised in advance of the eighty year threshold. Statute enables Sheerness qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Sheerness with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Sheerness can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Muhammad was the the leasehold owner of a studio flat in Sheerness on the market with a lease of a little over sixty years remaining. Muhammad informally approached his landlord 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 subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Christmas we were phoned by Mrs Lily Ricardo , who acquired a first floor apartment in Sheerness in June 2012. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar premises in Sheerness with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease end date was on 27 May 2097. Considering the 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Dr B Morel completed a ground floor flat in Sheerness in September 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Sheerness with a long lease were in the region of £225,800. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2086. Taking into account 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including legals.