It’s a harsh certainty that a Thatcham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Thatcham property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Thatcham will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Thatcham with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Thatcham 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.
Following unsuccessful negotiations with the landlord of her studio flat in Thatcham, Grace commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was finalised in February 2006. The landlord’s charges were kept to an absolute minimum.
Dr N Rogers was assigned a lease of a one bedroom apartment in Thatcham in August 2010. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable properties in Thatcham with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed in 2093. Given that there were 67 years remaining we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including legals.
In 2011 we were phoned by Mr Jake King who, having purchased a ground floor apartment in Thatcham in October 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Thatcham with a long lease were valued about £206,200. The average ground rent payable was £60 collected every twelve months. The lease elapsed on 28 September 2082. Having 56 years remaining we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus expenses.