Chances are that if you own a flat in Thame you actually own a long leasehold interest over your property
Leasehold properties in Thame with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The lawyers that we work with undertake 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.
During the course of the last few months Owen, started to get close to the 80-year threshold with the lease on his leasehold flat in Thame. In buying his home two decades ago, the length of the lease was of no interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Owen extended the lease just in the nick of time in June. Owen and the landlord ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £950.
Last Christmas we were e-mailed by Mr W Stewart , who moved into a newly refurbished apartment in Thame in May 2006. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar residencies in Thame with a long lease were worth £218,400. The average ground rent payable was £60 invoiced annually. The lease expired in 2085. Considering the 59 years outstanding we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus expenses.
In 2011 we were e-mailed by Mr Eliot Khan who, having completed a one bedroom apartment in Thame in November 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical properties in Thame with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated in 2105. Taking into account 79 years remaining we approximated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of professional charges.