It’s an underpublicised certainty that a Sheringham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Sheringham property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Sheringham will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Sheringham with over 100 years outstanding 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 upside in purchasing 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sheringham can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer 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 a wealth of experience procuring Sheringham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew owned a high value apartment in Sheringham being sold with a lease of a few days over 72 years remaining. Matthew on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. Y González took over the lease of a newly refurbished apartment in Sheringham in February 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Sheringham with a long lease were in the region of £246,800. The average ground rent payable was £60 billed annually. The lease terminated in 2075. Taking into account 50 years outstanding we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of costs.
Last Spring we were phoned by Dr A Rodríguez , who bought a one bedroom apartment in Sheringham in June 2009. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Sheringham with 100 year plus lease were worth £203,200. The mid-range ground rent payable was £65 collected monthly. The lease ended on 26 May 2086. Given that there were 61 years remaining we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus legals.