It’s an underpublicised truth that a Thurston residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Thurston property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Thurston will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Thurston with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you better control over the value of your Thurston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the landlord of her purpose-built apartment in Thurston, Jessica initiated the lease extension process just as the lease was nearing the critical eighty-year mark. The legal work completed in June 2009. The landlord’s charges were kept to an absolute minimum.
Dr Riley Howard purchased a one bedroom apartment in Thurston in August 1996. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Thurston with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease lapsed on 25 June 2081. Having 56 years outstanding we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus professional charges.
Last July we were contacted by Mr and Mrs. N Bailey , who moved into a basement apartment in Thurston in April 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Thurston with an extended lease were in the region of £242,600. The average amount of ground rent was £45 billed per annum. The lease elapsed on 15 January 2092. Considering the 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.