Thorpe Astley leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Thorpe Astley will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Thorpe Astley 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.
In the wake of 9 months of lengthy correspondence with the landlord of her purpose-built flat in Thorpe Astley, Madeleine initiated the lease extension process just as her lease was coming close to the crucial 80-year mark. The transaction completed in April 2010. The freeholder’s fees were restricted to less than 500 pounds.
In 2014 we were phoned by Ms Zoe Bailey who, having took over the lease of a purpose-built apartment in Thorpe Astley in November 1996. The question was if we could estimate the price could be to extend the lease by an additional years. Similar residencies in Thorpe Astley with 100 year plus lease were worth £235,200. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish in 2092. Taking into account 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
In 2013 we were phoned by Mr and Mrs. K Rose who, having purchased a studio apartment in Thorpe Astley in October 2012. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar flats in Thorpe Astley with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced per annum. The lease concluded in 2103. Having 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.