There is no doubt about it a leasehold flat or house in Thame is a wasting asset as a result of the shortening lease. Where the residual term has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Thame will meet the qualifying criteria; however a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Thame with more than 100 years unexpired 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Last Winter Eliot, came precariously close to the eighty-year threshold with the lease on his first floor flat in Thame. In buying his property two decades ago, the length of the lease was of no concern. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Eliot extended the lease just ahead of time in March. Eliot and the freeholder via the management company subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,050.
In 2012 we were approached by Dr F Green who, having purchased a newly refurbished flat in Thame in September 2004. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative residencies in Thame with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 invoiced yearly. The lease end date was on 24 February 2083. Having 57 years left we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.
In 2013 we were phoned by Mr and Mrs. P Díaz who, having purchased a ground floor flat in Thame in August 1997. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Identical residencies in Thame with an extended lease were in the region of £200,000. The average ground rent payable was £50 invoiced annually. The lease concluded in 2103. Taking into account 77 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.