Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Thetford. Clearly, the length of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Thetford have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Thetford lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Thetford 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.
Last October Harvey, started to get near to the 80-year threshold with the lease on his ground floor flat in Thetford. In buying his home 18 years previously, the unexpired term was of little importance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Harvey extended the lease at the eleventh hour in July. Harvey and the landlord who owned the flat above in the end settled on a premium of £6,000 . If the lease had dipped below 80 years, the premium would have escalated by a minimum £1,000.
Mr and Mrs. W Norbert owned a purpose-built flat in Thetford in May 2009. The question was if we could estimate the price could be to prolong the lease by ninety years. Similar residencies in Thetford with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished on 19 October 2077. Taking into account 51 years left we calculated the premium to the landlord for the lease extension to be within £43,700 and £50,600 not including professional charges.
Dr I Nelson owned a purpose-built flat in Thetford in September 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical homes in Thetford with an extended lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out in 2088. Having 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.