The market value of a leasehold property in Thorpe Hesley is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Thorpe Hesley qualifying lessees to an additional term of ninety years on top of the existing term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Thorpe Hesley with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Thorpe Hesley can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 Hesley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her first floor apartment in Thorpe Hesley, Niamh initiated the lease extension process just as her lease was approaching the crucial eighty-year threshold. The legal work was concluded in July 2006. The landlord’s charges were kept to an absolute minimum.
In 2013 we were approached by Mr Henry González who, having moved into a ground floor apartment in Thorpe Hesley in January 1999. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar residencies in Thorpe Hesley with a long lease were valued about £208,200. The mid-range amount of ground rent was £65 billed monthly. The lease expiry date was on 5 November 2087. Considering the 61 years as a residual term we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.
Mr F Roberts completed a ground floor apartment in Thorpe Hesley in August 2003. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical properties in Thorpe Hesley with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ran out in 2098. Having 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.