There is no doubt about it a leasehold property in Sittingbourne is a wasting asset as a result of the shortening lease. Where the residual term has, over 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Sittingbourne will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Sittingbourne with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Sittingbourne leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Reuben, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Sittingbourne. In buying his flat 19 years previously, the lease term was of minimal concern. Fortunately, he recognised he needed to take steps soon on a lease extension. Reuben was able to extend his lease just under the wire last January. Reuben and the freeholder via the managing agents subsequently agreed on an amount of £5,000 . If he not met the deadline, the figure would have become more costly by at least £1,050.
In 2014 we were phoned by Dr Eli Kelly who, having was assigned a lease of a purpose-built apartment in Sittingbourne in September 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Sittingbourne with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease lapsed in 2106. Having 80 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
In 2012 we were phoned by Dr Francesca Sánchez who, having owned a studio flat in Sittingbourne in April 2002. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Sittingbourne with a long lease were worth £275,000. The average amount of ground rent was £45 billed monthly. The lease finished on 16 November 2095. Having 69 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.