The nearer a residential lease in Skegness nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Skegness will qualify for this right; that being said a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Skegness with more than 100 years outstanding 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
The lawyers that we work with handle Skegness lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
John was the the leasehold owner of a high value flat in Skegness being sold with a lease of a little over 61 years outstanding. John informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. B André acquired a first floor apartment in Skegness in November 2003. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar premises in Skegness with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed in 2077. Considering the 51 years remaining we calculated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 plus legals.
In 2010 we were phoned by Ms Sophia González who, having took over the lease of a newly refurbished flat in Skegness in January 1999. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical flats in Skegness with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease ran out in 2088. Considering the 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of expenses.