It’s an underpublicised truth that a Thurston residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Thurston property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Thurston will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Thurston with in excess of one hundred years unexpired on the lease are often regarded as a ‘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 warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Thurston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Jayden, started to get near to the 80-year mark with the lease on his purpose- built flat in Thurston. In buying his home 18 years previously, the length of the lease was of little significance. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Jayden arranged for a lease extension at the eleventh hour last July. Jayden and the freeholder ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,125.
Mrs M Roberts was assigned a lease of a ground floor apartment in Thurston in April 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative flats in Thurston with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed monthly. The lease lapsed on 15 February 2089. Taking into account 63 years outstanding we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.
Last Winter we were contacted by Mr and Mrs. G Ali , who was assigned a lease of a one bedroom apartment in Thurston in April 1999. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative properties in Thurston with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated on 17 September 2100. Having 74 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.