Chances are that where you own a flat in Skegness you actually own a long leasehold interest over your property
Leasehold premises in Skegness with more than 100 years left on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Skegness can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Skegness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Sam, started to get close to the eighty-year mark with the lease on his basement flat in Skegness. Having bought his property 18 years previously, the unexpired term was of little bearing. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Sam extended the lease just under the wire in March. Sam and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had gone lower than 80 years, the amount would have escalated by a minimum £1,125.
Mr and Mrs. B Gray completed a first floor apartment in Skegness in August 2001. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Skegness with an extended lease were valued around £245,000. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2093. Considering the 68 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2010 we were called by Mr and Mrs. E Bertrand who, having completed a one bedroom flat in Skegness in February 2009. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative properties in Skegness with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed per annum. The lease expired in 2104. Taking into account 79 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.