The market value of a leasehold property in Thamesmead is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded ahead of the 80 year cut off point. Statute entitles Thamesmead qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Thamesmead with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Thamesmead can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 procuring Thamesmead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke was the the leasehold proprietor of a high value flat in Thamesmead on the market with a lease of just over 72 years remaining. Luke on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Dr Matthew Peterson took over the lease of a one bedroom apartment in Thamesmead in September 1999. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Thamesmead with a long lease were valued about £218,000. The mid-range ground rent payable was £45 collected per annum. The lease ran out on 17 August 2087. Given that there were 63 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of legals.
An example of a Lease Extension decision for a Thamesmead flat is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired lease term was 76 years.