Skegness leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Skegness will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you enhanced control over the value of your Skegness leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her garden apartment in Skegness, Niamh initiated the lease extension process as the eighty year mark was fast nearing. The legal work was finalised in June 2015. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mrs D Sharif , who completed a one bedroom apartment in Skegness in January 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar residencies in Skegness with a long lease were worth £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out in 2101. Taking into account 75 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2014 we were e-mailed by Mr Muhammad Girard who, having took over the lease of a ground floor apartment in Skegness in February 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Skegness with a long lease were in the region of £168,800. The mid-range ground rent payable was £60 billed per annum. The lease end date was on 24 June 2081. Considering the 55 years unexpired we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.