The value of Thorpe Hesley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than eighty years
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Thorpe Hesley can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
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 a wealth of experience 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.
In recent months Seth, came precariously near to the 80-year threshold with the lease on his ground floor flat in Thorpe Hesley. In buying his property two decades ago, the lease term was of no relevance. Thankfully, he realised he needed to take action soon on a lease extension. Seth was able to extend his lease just under the wire in September. Seth and the freeholder eventually agreed on a premium of £5,000 . If he not met the deadline, the premium would have gone up by at least £950.
Last Autumn we were phoned by Mr and Mrs. D Rogers , who moved into a one bedroom apartment in Thorpe Hesley in November 2004. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparable flats in Thorpe Hesley with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2103. Considering the 78 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Last year we were phoned by Mrs I Alexander , who took over the lease of a purpose-built apartment in Thorpe Hesley in July 2012. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Thorpe Hesley with 100 year plus lease were in the region of £191,000. The average ground rent payable was £65 invoiced quarterly. The lease ran out on 26 October 2083. Having 58 years as a residual term we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus costs.