West Thurrock leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in West Thurrock enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in West Thurrock you would be well advised to see if your lease has between seventy and 90 years left. There are good reasons why a West Thurrock leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake West Thurrock lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following unsuccessful discussions with the freeholder of her two bedroom flat in West Thurrock, Sophia commenced the lease extension process as the eighty year deadline was fast advancing. The transaction was finalised in July 2007. The landlord’s charges were kept to an absolute minimum.
Last month we were e-mailed by Mr K François , who acquired a garden flat in West Thurrock in July 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in West Thurrock with an extended lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease end date was in 2095. Considering the 71 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension case for a West Thurrock residence 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 affected 13 flats. The unexpired term was 76 years.