Chances are that if you own a flat in Sheringham you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a freeholder in Sheringham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sheringham valuers.
Half a year ago William, came dangerously close to the 80-year mark with the lease on his leasehold flat in Sheringham. Having purchased his flat two decades ago, the unexpired term was of little significance. Luckily, he became aware that he needed to take action soon on Extending the lease. William extended the lease at the eleventh hour last August. William and the landlord ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £925.
Last month we were contacted by Mr Caleb Young , who owned a first floor apartment in Sheringham in August 2009. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative flats in Sheringham with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out on 5 October 2104. Taking into account 78 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
Last month we were contacted by Mr and Mrs. R Vincent , who took over the lease of a studio apartment in Sheringham in August 1996. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Similar properties in Sheringham with an extended lease were valued around £191,000. The average amount of ground rent was £65 collected quarterly. The lease expiry date was on 11 November 2084. Given that there were 58 years left we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including costs.