When it comes to residential leasehold property in Thurston, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years remaining. Anyone in Thurston with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the current statute the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Thurston with over one hundred years outstanding 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Thurston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden owned a conversion flat in Thurston being sold with a lease of a few days over 72 years outstanding. Jayden on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2014 we were called by Mr and Mrs. V Reed who, having bought a newly refurbished flat in Thurston in February 1997. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Thurston with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 billed yearly. The lease ended on 13 January 2093. Considering the 68 years outstanding we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including costs.
Dr W Wilson completed a studio apartment in Thurston in May 2011. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Similar premises in Thurston with a long lease were in the region of £285,000. The average ground rent payable was £55 billed annually. The lease ran out on 12 February 2104. Considering the 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.