The market value of Thurmaston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is less than 80 years
Leasehold properties in Thurmaston with more than one hundred 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Thurmaston can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Thurmaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie was the the leasehold owner of a high value flat in Thurmaston being sold with a lease of a little over 72 years unexpired. Freddie informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were contacted by Mr E Taylor who, having acquired a first floor flat in Thurmaston in July 2007. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable premises in Thurmaston with 100 year plus lease were valued about £181,600. The mid-range amount of ground rent was £55 collected annually. The lease elapsed in 2077. Taking into account 52 years left we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
Last June we were phoned by Mrs Chloe Young , who bought a studio apartment in Thurmaston in April 2007. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Thurmaston with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish on 14 June 2097. Considering the 72 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.