Thrapston leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Thrapston will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Thrapston with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Thrapston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thrapston valuers.
Evan owned a studio flat in Thrapston being marketed with a lease of a little over sixty years unexpired. Evan informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. H Peterson owned a recently refurbished apartment in Thrapston in November 2005. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Thrapston with a long lease were valued around £254,200. The average ground rent payable was £60 invoiced quarterly. The lease terminated on 13 January 2077. Given that there were 51 years left we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 not including expenses.
Ms B Lambert purchased a garden apartment in Thrapston in April 2006. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical premises in Thrapston with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed annually. The lease concluded in 2088. Given that there were 62 years left we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.