Unfortunately that a Shoreham By Sea residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Shoreham By Sea property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to 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 The majority of flat owners in Shoreham By Sea will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Shoreham By Sea 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 Shoreham By Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam was the the leasehold proprietor of a studio flat in Shoreham By Sea on the market with a lease of a few days over sixty years unexpired. Liam on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Liam to invoke his statutory right. Liam procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. I Dupont bought a one bedroom flat in Shoreham By Sea in February 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Shoreham By Sea with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated on 28 May 2084. Considering the 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including fees.
Dr Harrison Clarke purchased a basement apartment in Shoreham By Sea in July 2012. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Similar homes in Shoreham By Sea with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed annually. The lease ran out on 11 May 2095. Having 70 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.