There is no doubt about it a leasehold property in Thame is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Thame will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with procure Thame 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 conveyancer we work with provide it.
Last year Tyler, came dangerously near to the eighty-year threshold with the lease on his one bedroom flat in Thame. In buying his property 19 years ago, the lease term was of little interest. by good luck, he noticed he needed to take action soon on a lease extension. Tyler was able to extend his lease just under the wire in July. Tyler and the landlord eventually agreed on sum of £5,500 . If the lease had slipped to less than 80 years, the figure would have escalated by a minimum £1,000.
In 2013 we were phoned by Mr A White who, having bought a one bedroom apartment in Thame in March 2006. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Thame with a long lease were worth £181,600. The average amount of ground rent was £55 invoiced annually. The lease terminated on 23 January 2078. Considering the 52 years left we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.
In 2009 we were e-mailed by Ms Danielle White who, having completed a purpose-built flat in Thame in June 2003. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative flats in Thame with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 collected annually. The lease end date was in 2098. Given that there were 72 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.