The nearer a domestic lease in Thetford gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Thetford will meet the qualifying criteria; that being said a conveyancer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Thetford with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Lease extensions in Thetford can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Thetford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Noah, started to get near to the 80-year mark with the lease on his purpose- built apartment in Thetford. Having purchased his property two decades ago, the length of the lease was of little concern. Thankfully, he noticed he needed to take action soon on a lease extension. Noah extended the lease at the eleventh hour last May. Noah and the landlord ultimately settled on sum of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,025.
In 2012 we were approached by Mr and Mrs. J Kelly who, having moved into a purpose-built apartment in Thetford in January 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Thetford with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated on 20 January 2082. Having 56 years left we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
In 2010 we were contacted by Ms N Davis who, having purchased a recently refurbished apartment in Thetford in July 2005. We are asked if we could estimate the price could be to prolong the lease by 90 years. Identical flats in Thetford with 100 year plus lease were worth £242,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated on 20 January 2093. Given that there were 67 years left we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus legals.