Main reasons to commence your Skegness lease extension

Main reasons to commence your Skegness lease extension today:

A Skegness leasehold property depreciates with the years remaining on the lease.

Skegness leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Skegness residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Skegness you would be well advised to see if your lease has between seventy and 90 years left. There are good reasons why a Skegness flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay

Skegness property with a lease extension is almost the same value as a freehold

Leasehold properties in Skegness with more than 100 years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders will not loan monies with a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Skegness lease extensions?

Irrespective of whether you are a tenant or a landlord in Skegness,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Skegness valuers.

Skegness Lease Extension Example Cases:

Logan, Skegness, Lincolnshire,

Logan was the the leasehold owner of a conversion apartment in Skegness being marketed with a lease of a few days over 59 years outstanding. Logan on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.

Skegness case:

In 2013 we were approached by Mr and Mrs. O White who, having bought a first floor flat in Skegness in June 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical properties in Skegness with a long lease were valued about £186,000. The average amount of ground rent was £65 billed every twelve months. The lease concluded on 9 August 2084. Taking into account 58 years unexpired we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including expenses.

Skegness case:

Last Autumn we were contacted by Dr Sophie Lefèvre , who took over the lease of a one bedroom apartment in Skegness in September 2003. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical properties in Skegness with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed on 14 May 2095. Given that there were 69 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.