Unfortunately that a Thorpe Astley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Thorpe Astley property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term drops under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to 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 flat owners in Thorpe Astley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 gives you increased control over the value of your Thorpe Astley leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her basement apartment in Thorpe Astley, Chantelle commenced the lease extension process as the 80 year threshold was quickly approaching. The lease extension was finalised in July 2012. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Dr E Cooper who, having bought a garden flat in Thorpe Astley in October 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Thorpe Astley with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish in 2106. Having 80 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
In 2012 we were phoned by Ms Sian Lewis who, having completed a one bedroom apartment in Thorpe Astley in March 2002. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparable properties in Thorpe Astley with a long lease were valued about £200,800. The average ground rent payable was £65 invoiced yearly. The lease terminated on 17 November 2086. Given that there were 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.