There is no doubt about it a leasehold property in Thurston is a wasting asset as a result of the shortening lease. Where the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Thurston will meet the qualifying criteria; that being said a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Thurston with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Thurston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thurston valuers.
Milo owned a conversion apartment in Thurston being sold with a lease of fraction over sixty years left. Milo informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2014 we were phoned by Dr Benjamin Hall who, having bought a ground floor flat in Thurston in September 2001. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Thurston with 100 year plus lease were worth £290,000. The average ground rent payable was £60 collected yearly. The lease terminated in 2105. Taking into account 80 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
Last Summer we were contacted by Mr Reuben Young , who bought a ground floor apartment in Thurston in November 2009. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable premises in Thurston with an extended lease were worth £200,800. The average ground rent payable was £65 billed per annum. The lease elapsed on 10 October 2085. Taking into account 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of legals.