The re-sale value of a leasehold property in Thorpe Astley is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded well before the 80 year threshold. Current legislation enables Thorpe Astley qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Thorpe Astley with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Thorpe Astley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thorpe Astley valuers.
In the wake of 6 months of lengthy correspondence with the landlord of her leasehold apartment in Thorpe Astley, Victoria commenced the lease extension process just as the lease was approaching the critical eighty-year threshold. The legal work completed in February 2008. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were contacted by Dr P Peterson who, having purchased a first floor apartment in Thorpe Astley in October 2000. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Thorpe Astley with an extended lease were in the region of £256,600. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2077. Considering the 52 years outstanding we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of costs.
In 2011 we were phoned by Mrs Emma Anderson who, having owned a one bedroom apartment in Thorpe Astley in January 2003. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical properties in Thorpe Astley with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed on 22 November 2088. Considering the 63 years unexpired we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.