The value of Thatcham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is below than eighty years
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Thatcham can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Thatcham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold owner of a 2 bedroom apartment in Thatcham on the market with a lease of a few days over 61 years unexpired. Lucas informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2012 we were called by Mrs L King who, having acquired a newly refurbished apartment in Thatcham in September 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Thatcham with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed on 11 October 2088. Given that there were 62 years outstanding we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus legals.
Last Spring we were contacted by Dr Sophia Clarke , who acquired a garden apartment in Thatcham in March 1997. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical residencies in Thatcham with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 billed quarterly. The lease ended on 2 January 2077. Having 51 years left we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.