Unfortunately that a Thetford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Thetford property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Thetford will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Thetford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thetford valuers.
Half a year ago Muhammad, came seriously close to the eighty-year threshold with the lease on his purpose- built apartment in Thetford. In buying his property 18 years previously, the unexpired term was of minimal significance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Muhammad arranged for a lease extension just under the wire in July. Muhammad and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had slipped lower than eighty years, the premium would have increased by a minimum £1,025.
Last Summer we were approach by Mr and Mrs. O Baker , who moved into a one bedroom flat in Thetford in March 2003. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Thetford with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated on 20 March 2098. Given that there were 73 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
In 2012 we were contacted by Mr and Mrs. W François who, having owned a garden apartment in Thetford in July 1997. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Thetford with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 invoiced quarterly. The lease finished in 2078. Considering the 53 years remaining we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.