Unfortunately that a Thamesmead residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Thamesmead property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Thamesmead will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Thamesmead with in excess of 100 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Thamesmead,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thamesmead valuers.
Half a year ago Oscar, came dangerously near to the eighty-year threshold with the lease on his first floor flat in Thamesmead. Having bought his flat two decades ago, the lease term was of minimal concern. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Oscar arranged for a lease extension at the eleventh hour in September. Oscar and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If the lease had fallen lower than eighty years, the figure would have increased by a minimum £900.
Dr H Lefebvre completed a newly refurbished flat in Thamesmead in March 2002. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative homes in Thamesmead with an extended lease were valued about £227,800. The mid-range ground rent payable was £45 collected quarterly. The lease ended in 2091. Given that there were 65 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
An example of a Lease Extension case 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 remaining number of years on the lease was 76 years.