Thurston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Thurston residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Thurston you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 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 ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Thurston can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 Thurston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold owner of a studio flat in Thurston on the market with a lease of fraction over sixty years remaining. Mason on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. I Bell who, having owned a one bedroom flat in Thurston in May 2005. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Identical properties in Thurston with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease lapsed on 25 September 2096. Considering the 70 years left we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of costs.
Dr U Evans was assigned a lease of a first floor flat in Thurston in June 2003. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical properties in Thurston with an extended lease were valued around £246,800. The average amount of ground rent was £60 billed annually. The lease ran out in 2076. Considering the 50 years unexpired we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 not including fees.