Unfortunately that a West Thurrock residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the West Thurrock property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in West Thurrock 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 timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in West Thurrock with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works |
Engaging our service gives you increased control over the value of your West Thurrock leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Nathaniel, came precariously close to the 80-year mark with the lease on his purpose- built flat in West Thurrock. Having purchased his flat twenty years ago, the unexpired term was of minimal relevance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Nathaniel was able to extend his lease at the eleventh hour in April. Nathaniel and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £850.
Last September we were called by Mrs K Wood , who bought a purpose-built apartment in West Thurrock in June 2008. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical flats in West Thurrock with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish on 12 June 2082. Having 56 years as a residual term we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
An example of a Lease Extension case for a West Thurrock flat is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired lease term was 76 years.