Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Thrapston. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Thrapston have the right to extend the lease for an additional ninety years in accordance with statute. Please give careful attention before delaying your Thrapston lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Thrapston with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
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 experience and the close ties they enjoy with Thrapston valuers.
In the wake of eight months of protracted discussions with the landlord of her studio apartment in Thrapston, Kirsty started the lease extension process just as her lease was nearing the critical eighty-year deadline. The legal work was concluded in August 2011. The landlord’s charges were negotiated to below 550 GBP.
Last year we were contacted by Mr and Mrs. W Simon , who took over the lease of a garden apartment in Thrapston in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar premises in Thrapston with a long lease were valued around £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease end date was on 17 June 2101. Considering the 75 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Mrs Ashleigh Allen completed a recently refurbished apartment in Thrapston in November 2002. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Thrapston with an extended lease were worth £168,800. The average amount of ground rent was £60 collected monthly. The lease expired on 15 July 2081. Considering the 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.