Thetford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Thetford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Thetford you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you increased control over the value of your Thetford leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum was the the leasehold proprietor of a 2 bedroom flat in Thetford being marketed with a lease of fraction over sixty years left. Callum on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Summer we were approach by Ms Yasmin Moreau , who acquired a ground floor apartment in Thetford in November 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Thetford with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed quarterly. The lease lapsed on 13 November 2083. Taking into account 58 years as a residual term we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.
Last Autumn we were called by Mr and Mrs. F Michel , who purchased a one bedroom apartment in Thetford in August 2001. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparable properties in Thetford with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 billed every twelve months. The lease finished in 2094. Considering the 69 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.