Shoreham By Sea leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Shoreham By Sea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Shoreham By Sea you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| TSB |
Using our service will provide you increased control over the value of your Shoreham By Sea leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold owner of a studio flat in Shoreham By Sea being marketed with a lease of a few days over 59 years left. Jayden informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert advice and secured satisfactory resolution informally and readily saleable.
Dr Jodie Bell acquired a basement apartment in Shoreham By Sea in November 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Shoreham By Sea with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease finished on 3 January 2106. Having 80 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2010 we were e-mailed by Dr B Pérez who, having took over the lease of a ground floor flat in Shoreham By Sea in June 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Shoreham By Sea with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 billed per annum. The lease ended on 22 February 2086. Taking into account 60 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of fees.