When it comes to domestic leasehold property in Thamesmead, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Thamesmead with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has fewer than 80 years left, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Thamesmead with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
The conveyancers that we work with procure Thamesmead 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 conveyancing solicitor we work with provide it.
Following unsuccessful negotiations with the freeholder of her two bedroom flat in Thamesmead, Erin commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The transaction completed in February 2011. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were approach by Mr and Mrs. P Pérez , who owned a studio apartment in Thamesmead in January 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Thamesmead with a long lease were valued around £255,000. The average ground rent payable was £50 billed annually. The lease elapsed on 1 July 2095. Given that there were 70 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Thamesmead residence is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The number of years remaining on the existing lease(s) was 76 years.