For anyone whose Thamesmead home is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors 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.
Twenty four months ago Reuben, started to get close to the 80-year threshold with the lease on his studio apartment in Thamesmead. Having bought his property twenty years ago, the unexpired term was of minimal importance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Reuben was able to extend his lease just in the nick of time in January. Reuben and the landlord subsequently settled on an amount of £5,500 . If the lease had gone lower than eighty years, the sum would have become more exhorbitant by a minimum £975.
Last Christmas we were phoned by Ms Poppy Leroy , who bought a ground floor apartment in Thamesmead in November 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar premises in Thamesmead with a long lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease expired on 2 October 2082. Having 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
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 related to 13 flats. The unexpired term as at the valuation date was 76 years.