Thamesmead Lease Extension - Free Consultation

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Main reasons to start your Thamesmead lease extension

Main reasons to commence your Thamesmead lease extension today:

Increase your lease and increase your Thamesmead property value

With a residential leasehold premises in Thamesmead, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Thamesmead with a lease nearing 81 years left should seriously think of extending it sooner than later. When a lease has less than eighty years remaining, under the current Act the landlord can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not issue a mortgage with a short lease

Most mortgage companies insist on a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should bear in mind that it is reasonable to assume that someone wanting to buy your property in the future might well do, so where they can't get a mortgage, then the value of the property will likely be adversely impacted. In the last decade many banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

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.
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.
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.

Get in touch with one of our Thamesmead lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle 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 conveyancer we work with provide it.

Thamesmead Lease Extension Example Cases:

Muhammad, Thamesmead, South East London

Last October Muhammad, came precariously near to the eighty-year threshold with the lease on his garden apartment in Thamesmead. Having purchased his home 18 years previously, the unexpired term was of little relevance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Muhammad extended the lease at the eleventh hour in June. Muhammad and the landlord in the end settled on an amount of £6,000 . If he not met the deadline, the sum would have gone up by at least £1,100.

Thamesmead case:

In 2010 we were e-mailed by Dr E Allen who, having was assigned a lease of a basement flat in Thamesmead in March 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Thamesmead with a long lease were in the region of £227,800. The average ground rent payable was £45 billed every twelve months. The lease expiry date was on 1 March 2087. Taking into account 65 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.

Decision in Bexley

An example of a Lease Extension case for a Thamesmead property 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 term as at the valuation date was 76 years.