When it comes to domestic leasehold premises in Skegness, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Residents in Skegness with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the current Act the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Skegness leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jason, started to get close to the eighty-year mark with the lease on his garden apartment in Skegness. Having purchased his home two decades ago, the lease term was of little bearing. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Jason was able to extend his lease just under the wire in May. Jason and the freeholder via the management company eventually agreed on a premium of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £850.
Dr Sian White was assigned a lease of a basement apartment in Skegness in October 2007. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative homes in Skegness with an extended lease were in the region of £227,800. The average ground rent payable was £45 collected quarterly. The lease expiry date was in 2091. Given that there were 65 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
Last Autumn we were e-mailed by Mrs P Edwards , who took over the lease of a basement flat in Skegness in September 2007. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Similar residencies in Skegness with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected per annum. The lease termination date was on 1 February 2101. Considering the 75 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.