Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Thorpe Hesley. Clearly, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Thorpe Hesley have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Please give due deliberation before delaying your Thorpe Hesley lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold properties in Thorpe Hesley with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Retaining our service gives you increased control over the value of your Thorpe Hesley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October William, came seriously near to the eighty-year threshold with the lease on his basement apartment in Thorpe Hesley. Having bought his property 18 years previously, the lease term was of no concern. Thankfully, he realised he needed to take action soon on a lease extension. William was able to extend his lease just under the wire in April. William and the freeholder ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have gone up by at least £1,000.
Last Winter we were phoned by Mr and Mrs. S Sánchez , who completed a purpose-built apartment in Thorpe Hesley in March 2011. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable homes in Thorpe Hesley with an extended lease were in the region of £198,400. The mid-range amount of ground rent was £65 invoiced monthly. The lease finished in 2084. Considering the 59 years outstanding we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
In 2010 we were phoned by Ms Isabelle Lee who, having acquired a garden apartment in Thorpe Hesley in October 2010. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar residencies in Thorpe Hesley with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished in 2095. Considering the 70 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.