Thames View leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Thames View enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Thames View you must investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Thames View leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Thames View 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.
Two years ago Liam, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Thames View. Having bought his flat 19 years ago, the lease term was of minimal concern. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Liam extended the lease just under the wire in January. Liam and the freeholder via the managing agents in the end agreed on sum of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £925.
Last Winter we were contacted by Mr Kian Díaz , who owned a garden flat in Thames View in September 2004. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Thames View with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2078. Given that there were 52 years remaining we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus professional charges.
An example of a Lease Extension decision for a Thames View flat is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired term as at the valuation date was 61.36 years.