When it comes to long leasehold premises in Thurston, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years left. Residents in Thurston with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has below 80 years remaining, under the relevant statute the landlord can calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Thurston can be a difficult process. We recommend you procure professional help from a lawyer 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.
Adam owned a studio flat in Thurston being marketed with a lease of just over 61 years remaining. Adam informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Austin Ali took over the lease of a basement apartment in Thurston in November 2010. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Thurston with a long lease were worth £280,000. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish in 2103. Having 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
In 2014 we were phoned by Mr W Garcia who, having acquired a studio apartment in Thurston in August 2007. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparable residencies in Thurston with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 billed every twelve months. The lease finished on 21 August 2083. Considering the 57 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.