It’s an underpublicised truth that a Thorpe Astley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Thorpe Astley property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Thorpe Astley will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Thorpe Astley with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 will provide you enhanced control over the value of your Thorpe Astley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alfie owned a high value flat in Thorpe Astley being marketed with a lease of just over sixty years remaining. Alfie informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Winter we were approach by Dr Lauren Jones , who was assigned a lease of a basement apartment in Thorpe Astley in May 2010. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Identical properties in Thorpe Astley with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2084. Taking into account 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
In 2010 we were called by Mr and Mrs. S Wright who, having was assigned a lease of a one bedroom flat in Thorpe Astley in October 2007. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable flats in Thorpe Astley with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded in 2095. Given that there were 70 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.