The only way is down when it comes to Thorpe St Andrew lease terms. Thorpe St Andrew flats that have a lease term less than than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service gives you increased control over the value of your Thorpe St Andrew leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Isaac, came seriously close to the 80-year threshold with the lease on his two bedroom flat in Thorpe St Andrew. Having bought his property two decades ago, the length of the lease was of no bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Isaac was able to extend his lease at the eleventh hour in June. Isaac and the freeholder via the managing agents in the end settled on a premium of £5,000 . If the lease had dropped to less than eighty years, the premium would have gone up by a minimum £1,000.
Last month we were called by Dr U Ward , who acquired a garden apartment in Thorpe St Andrew in March 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Thorpe St Andrew with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded on 14 March 2081. Taking into account 56 years outstanding we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.
In 2012 we were e-mailed by Mrs J Moreau who, having took over the lease of a newly refurbished apartment in Thorpe St Andrew in November 2010. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Thorpe St Andrew with 100 year plus lease were valued around £242,600. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed in 2092. Taking into account 67 years remaining we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.