The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Thatcham may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Thatcham lease extension. Postponing the costs today simply escalates the price you will eventually have to pay for a lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Thatcham,the lease extension lawyers 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 Thatcham valuers.
After unsuccessful correspondence with the landlord of her leasehold flat in Thatcham, Amy commenced the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work was finalised in February 2012. The freeholder’s costs were negotiated to approximately 600 GBP.
In 2014 we were approached by Mrs F Cooper who, having bought a one bedroom flat in Thatcham in October 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Thatcham with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 billed yearly. The lease ran out in 2104. Considering the 79 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
Last Spring we were approach by Mr and Mrs. U Ricardo , who bought a purpose-built flat in Thatcham in January 2004. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical premises in Thatcham with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease ran out on 11 April 2093. Considering the 68 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.