With a residential leasehold property in Whitstable, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Whitstable with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has less than 80 years remaining, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| Leeds Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Whitstable,the lease extension solicitors 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 Whitstable valuers.
Rory was the the leasehold proprietor of a 2 bedroom flat in Whitstable being marketed with a lease of a few days over 59 years unexpired. Rory on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. V André , who was assigned a lease of a ground floor apartment in Whitstable in September 2005. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Identical premises in Whitstable with an extended lease were valued about £200,800. The average amount of ground rent was £65 collected per annum. The lease came to a finish on 7 October 2086. Having 60 years left we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including professional charges.
Dr M Watson completed a first floor apartment in Whitstable in September 2006. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Whitstable with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected monthly. The lease concluded on 7 May 2097. Given that there were 71 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.