As the length of the unexpired term of a Thatcham domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Thatcham will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you qualify for a lease extension. 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 considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Thatcham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thatcham valuers.
In 2014 Jamie, started to get near to the 80-year threshold with the lease on his garden apartment in Thatcham. In buying his home 18 years ago, the length of the lease was of minimal interest. As luck would have it, he recognised he needed to take action soon on a lease extension. Jamie was able to extend his lease just in the nick of time in June. Jamie and the freeholder in the end agreed on an amount of £5,500 . If the lease had descended below 80 years, the sum would have become more exhorbitant by at least £1,075.
Mr G Hall owned a one bedroom flat in Thatcham in July 2009. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable properties in Thatcham with an extended lease were worth £198,800. The mid-range ground rent payable was £55 collected annually. The lease expired in 2081. Given that there were 55 years left we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of legals.
Mr Riley Martínez purchased a newly refurbished apartment in Thatcham in September 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable premises in Thatcham with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed on 9 May 2101. Taking into account 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.