The closer a domestic lease in Thames View gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty 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 rational as to why you should extend the lease sooner rather than later. Many flat owners in Thames View will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Thames View with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
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.
In recent months Tyler, came seriously near to the eighty-year mark with the lease on his one bedroom apartment in Thames View. Having bought his property 18 years ago, the length of the lease was of no importance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Tyler was able to extend his lease just under the wire in January. Tyler and the landlord who owned the flat above in the end settled on a premium of £5,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £850.
In 2010 we were e-mailed by Dr K Pérez who, having owned a recently refurbished flat in Thames View in April 2005. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Similar properties in Thames View with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed in 2103. Considering the 77 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
An example of a Lease Extension matter before the tribunal for a Thames View property 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 was in relation to 1 flat. The unexpired lease term was 61.36 years.