As the length of the unexpired term of a Thame domestic lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Thame will qualify for this right; that being said a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord 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.
Alex was the the leasehold proprietor of a high value flat in Thame on the market with a lease of a few days over 72 years left. Alex on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Christmas we were e-mailed by Ms R López , who moved into a basement apartment in Thame in March 1998. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar properties in Thame with a long lease were worth £250,400. The average amount of ground rent was £65 invoiced annually. The lease terminated on 19 January 2090. Having 64 years remaining we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus fees.
Ms Rhiannon Thomas owned a basement flat in Thame in March 2001. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical premises in Thame with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 billed monthly. The lease concluded on 25 March 2079. Given that there were 53 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.