Thorpe St Andrew leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Thorpe St Andrew residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Thorpe St Andrew you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 St Andrew can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Thorpe St Andrew 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 Kian, started to get close to the 80-year threshold with the lease on his studio flat in Thorpe St Andrew. Having purchased his home twenty years ago, the lease term was of minimal significance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Kian arranged for a lease extension just under the wire in August. Kian and the freeholder ultimately agreed on the final figure of £5,500 . If the lease had slid to less than eighty years, the amount would have become more costly by a minimum £1,075.
Last Autumn we were approach by Mr and Mrs. W Young , who acquired a one bedroom apartment in Thorpe St Andrew in May 2008. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar premises in Thorpe St Andrew with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease ran out in 2103. Taking into account 77 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
Mrs P Jackson purchased a one bedroom apartment in Thorpe St Andrew in June 2004. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical residencies in Thorpe St Andrew with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 collected annually. The lease end date was on 3 October 2083. Considering the 57 years unexpired we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.