Thames View leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Thames View will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Thames View with more than one hundred years unexpired on the lease are sometimes referred to as ‘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 maintenance 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you increased control over the value of your Thames View leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago John, came very near to the eighty-year threshold with the lease on his first floor apartment in Thames View. Having purchased his property two decades ago, the lease term was of no relevance. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. John was able to extend his lease just ahead of time in July. John and the landlord in the end agreed on the final figure of £5,500 . If the lease had fallen lower than eighty years, the figure would have gone up by a minimum £1,125.
Last Autumn we were approach by Dr Finn Stewart , who bought a ground floor apartment in Thames View in February 1998. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable premises in Thames View with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed quarterly. The lease terminated on 3 April 2101. Given that there were 77 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension case for a Thames View flat is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired lease term was 61.36 years.