Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Thurmaston. Inevitably, the length of lease left reduces over time. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Thurmaston have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Thurmaston lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Thurmaston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thurmaston valuers.
Trailing lengthy discussions with the freeholder of her garden flat in Thurmaston, Elizabeth started the lease extension process as the 80 year threshold was fast approaching. The lease extension was finalised in April 2011. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. O Dupont took over the lease of a ground floor apartment in Thurmaston in October 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Thurmaston with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated on 28 April 2093. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including expenses.
In 2011 we were phoned by Mr and Mrs. K Moore who, having moved into a garden flat in Thurmaston in September 2007. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative residencies in Thurmaston with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish in 2082. Having 56 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.