Thorpe Hesley leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Thorpe Hesley will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Thorpe Hesley,the lease extension solicitors 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 Hesley valuers.
Alex owned a studio apartment in Thorpe Hesley being marketed with a lease of fraction over 61 years left. Alex on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr Isaac Murphy owned a one bedroom flat in Thorpe Hesley in August 2007. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Thorpe Hesley with a long lease were worth £265,000. The average ground rent payable was £50 invoiced per annum. The lease ran out on 24 May 2099. Given that there were 73 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Ms Jessica Hernández moved into a studio apartment in Thorpe Hesley in February 2001. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Thorpe Hesley with an extended lease were valued around £264,000. The mid-range ground rent payable was £60 invoiced per annum. The lease expired in 2079. Given that there were 53 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.