Thorpe Astley leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Thorpe Astley will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Thorpe Astley with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Thorpe Astley can be a difficult process. We recommend you procure professional help 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 in-depth market knowledge dealing with Thorpe Astley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the landlord of her garden flat in Thorpe Astley, Georgina commenced the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was finalised in February 2012. The landlord’s charges were negotiated to under 550 GBP.
Last Autumn we were contacted by Dr Ali Sánchez , who completed a one bedroom flat in Thorpe Astley in February 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Thorpe Astley with a long lease were valued about £166,400. The mid-range amount of ground rent was £60 collected annually. The lease terminated in 2080. Taking into account 54 years unexpired we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including costs.
Ms Elizabeth Harris moved into a recently refurbished flat in Thorpe Astley in June 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Thorpe Astley with an extended lease were in the region of £227,800. The mid-range amount of ground rent was £45 collected monthly. The lease terminated in 2091. Taking into account 65 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.