It’s a harsh truth that a Shoreham By Sea residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Shoreham By Sea property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below 80 years, you will end up paying half 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 additional value that a lease extension will add the property Most leasehold owners in Shoreham By Sea will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Shoreham By Sea with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Shoreham By Sea,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 Shoreham By Sea valuers.
Last year Jason, came perilously near to the 80-year mark with the lease on his one bedroom flat in Shoreham By Sea. Having purchased his property twenty years ago, the unexpired term was of minimal interest. by good luck, he realised he would imminently be paying an escalated premium for Extending the lease. Jason arranged for a lease extension at the eleventh hour last July. Jason and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If the lease had slipped to less than 80 years, the figure would have become more exhorbitant by at least £950.
In 2012 we were contacted by Mr and Mrs. H Evans who, having was assigned a lease of a one bedroom flat in Shoreham By Sea in June 2008. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar homes in Shoreham By Sea with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 billed monthly. The lease expiry date was in 2080. Taking into account 54 years unexpired we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
Mrs S Ali acquired a basement apartment in Shoreham By Sea in October 2000. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Shoreham By Sea with a long lease were in the region of £227,800. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish in 2091. Having 65 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.