Unfortunately that a Thurrock residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Thurrock property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Most flat owners in Thurrock will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Thurrock,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thurrock valuers.
Trailing lengthy correspondence with the landlord of her leasehold apartment in Thurrock, Alicia started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The lease extension was finalised in November 2010. The freeholder’s costs were negotiated to approximately 500 GBP.
In 2014 we were approached by Dr Eleanor Brooks who, having bought a basement flat in Thurrock in March 1995. The question was if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Thurrock with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished in 2095. Considering the 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
In 2009 we were called by Dr Connor Baker who, having purchased a studio flat in Thurrock in October 2005. The question was if we could estimate the premium could be to extend the lease by 90 years. Similar flats in Thurrock with 100 year plus lease were worth £223,400. The mid-range ground rent payable was £60 billed annually. The lease end date was in 2084. Having 59 years left we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus costs.