The market value of a leasehold property in Thamesmead depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed well before the 80 year cut off point. Statute entitles Thamesmead qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Thamesmead with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 Thamesmead can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
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 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.
Joseph was the the leasehold proprietor of a conversion flat in Thamesmead being sold with a lease of just over 72 years remaining. Joseph informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and secured an acceptable resolution informally and readily saleable.
Last Spring we were called by Mr and Mrs. G Davies , who completed a newly refurbished apartment in Thamesmead in July 2003. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar properties in Thamesmead with an extended lease were worth £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 16 November 2076. Taking into account 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of costs.
An example of a Lease Extension case for a Thamesmead premises 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 term was 76 years.