With a residential leasehold property in Sheringham, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Leasehold owners in Sheringham with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. When a lease has under 80 years outstanding, under the relevant legislation the freeholder can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, 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. |
| Chelsea Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sheringham can be a difficult process. We recommend you procure professional help from a lawyer 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.
Isaac was the the leasehold owner of a studio apartment in Sheringham being sold with a lease of just over fifty eight years outstanding. Isaac informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Mrs J Bertrand was assigned a lease of a studio flat in Sheringham in September 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Sheringham with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 invoiced per annum. The lease finished in 2087. Having 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.
In 2010 we were phoned by Mr and Mrs. E Mercier who, having acquired a one bedroom flat in Sheringham in July 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Sheringham with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 collected quarterly. The lease terminated in 2098. Given that there were 73 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.