Thame leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Thame will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Thame with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Thame,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thame valuers.
Two years ago James, started to get close to the eighty-year threshold with the lease on his studio apartment in Thame. Having bought his property 18 years ago, the lease term was of minimal relevance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. James was able to extend his lease just under the wire in May. James and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had descended below eighty years, the premium would have escalated by a minimum £975.
Last Autumn we were phoned by Mr S Walker , who was assigned a lease of a studio apartment in Thame in March 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative properties in Thame with an extended lease were in the region of £235,600. The average amount of ground rent was £60 invoiced annually. The lease ended in 2087. Given that there were 62 years unexpired we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.
In 2010 we were approached by Dr Hunter Sharif who, having acquired a studio apartment in Thame in March 2006. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparable properties in Thame with an extended lease were in the region of £174,200. The average ground rent payable was £55 collected monthly. The lease elapsed on 17 April 2076. Given that there were 51 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.