Thamesmead leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Thamesmead will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Thamesmead can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience dealing with Thamesmead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Dexter, came very close to the eighty-year mark with the lease on his ground floor flat in Thamesmead. In buying his property two decades ago, the unexpired term was of little significance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Dexter arranged for a lease extension just ahead of time last April. Dexter and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the amount would have gone up by at least £975.
Last Summer we were contacted by Dr Y Petit , who purchased a purpose-built apartment in Thamesmead in March 1999. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Thamesmead with a long lease were valued about £176,200. The average amount of ground rent was £65 collected monthly. The lease elapsed on 27 February 2081. Taking into account 56 years unexpired we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Thamesmead property 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 related to 13 flats. The unexpired residue of the current lease was 76 years.