The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Thatcham may extend the lease for an additional ninety years under Leasehold Reform legislation. Please think carefully before delaying your Thatcham lease extension. Postponing that expense now simply increases the amount you will eventually be required to pay for a lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Using our service gives you increased control over the value of your Thatcham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harrison owned a high value apartment in Thatcham on the market with a lease of fraction over sixty years left. Harrison on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Dr F Robinson bought a recently refurbished flat in Thatcham in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Thatcham with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected per annum. The lease terminated in 2101. Considering the 75 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Mrs V Allen bought a first floor flat in Thatcham in March 2001. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative properties in Thatcham with an extended lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced annually. The lease finished in 2090. Considering the 64 years remaining we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including expenses.