West Thurrock leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in West Thurrock will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure West Thurrock lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Luca was the the leasehold proprietor of a studio apartment in West Thurrock being marketed with a lease of fraction over 59 years remaining. Luca informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert advice and secured satisfactory resolution informally and sell the property.
Last May we were called by Mr and Mrs. W Jones , who bought a purpose-built apartment in West Thurrock in November 2009. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Similar residencies in West Thurrock with an extended lease were in the region of £250,000. The average amount of ground rent was £50 invoiced monthly. The lease expired in 2095. Considering the 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
An example of a Lease Extension decision 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 term as at the valuation date was 76 years.