When it comes to long leasehold property in Thames View, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Residents in Thames View with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has fewer than eighty years remaining, under the current legislation the freeholder can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Trailing unsuccessful discussions with the landlord of her first floor apartment in Thames View, Aimee started the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was concluded in March 2012. The landlord’s charges were negotiated to less than 700 GBP.
Last year we were called by Ms Lucy Sharif , who purchased a studio flat in Thames View in April 1995. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative flats in Thames View with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced monthly. The lease elapsed on 17 January 2097. Given that there were 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
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 related to 1 flat. The unexpired residue of the current lease was 61.36 years.