As the the remaining lease term of a Thamesmead residential lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Thamesmead will meet the qualifying criteria; however a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you increased control over the value of your Thamesmead leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Archie, came perilously near to the eighty-year threshold with the lease on his purpose- built flat in Thamesmead. In buying his property twenty years previously, the length of the lease was of little concern. Luckily, he became aware that he needed to take steps soon on a lease extension. Archie extended the lease just under the wire in July. Archie and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had dipped below eighty years, the sum would have increased by a minimum £1,150.
In 2013 we were approached by Mr and Mrs. M Morris who, having acquired a basement apartment in Thamesmead in March 2009. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical flats in Thamesmead with an extended lease were worth £203,200. The mid-range amount of ground rent was £65 collected annually. The lease lapsed in 2087. Taking into account 61 years unexpired we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Thamesmead premises 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 related to 13 flats. The unexpired residue of the current lease was 76 years.