With a long leasehold property in Thurrock, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Anyone in Thurrock with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Thurrock can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 dealing with Thurrock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph was the the leasehold owner of a studio flat in Thurrock on the market with a lease of a few days over sixty years left. Joseph on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last April we were phoned by Mr Hunter Bertrand , who purchased a studio flat in Thurrock in February 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative flats in Thurrock with an extended lease were valued around £174,200. The average amount of ground rent was £55 collected every twelve months. The lease finished on 13 August 2076. Given that there were 51 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
Last October we were contacted by Mr and Mrs. A Mason , who purchased a recently refurbished flat in Thurrock in July 2003. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable properties in Thurrock with a long lease were worth £285,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 18 August 2096. Having 71 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.