There is no doubt about it a leasehold flat or house in Thrapston is a wasting asset as a result of the shortening lease. Where the lease has, more than one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Thrapston will qualify for this right; nevertheless a lawyer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Thrapston with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Thrapston,the lease extension solicitors that we work with will always be willing 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.
Following unsuccessful discussions with the landlord of her studio flat in Thrapston, Victoria initiated the lease extension process as the eighty year mark was swiftly approaching. The legal work was concluded in November 2008. The landlord’s charges were restricted to slightly above 500 GBP.
Last Spring we were contacted by Mr Aarav Roux , who acquired a purpose-built flat in Thrapston in February 1996. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Thrapston with a long lease were valued about £176,200. The average ground rent payable was £65 collected per annum. The lease termination date was in 2081. Considering the 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of professional charges.
Mrs R Stewart purchased a garden apartment in Thrapston in September 2000. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative residencies in Thrapston with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 collected yearly. The lease ended on 21 February 2092. Taking into account 67 years left we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including fees.