With a long leasehold premises in West Thurrock, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Residents in West Thurrock with a lease approaching 81 years remaining should seriously think of extending it sooner than later. Once a lease has under 80 years left, under the relevant statute the freeholder can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in West Thurrock with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
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 terms of 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.
Two years ago Ben, came perilously close to the eighty-year threshold with the lease on his basement flat in West Thurrock. Having bought his property two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he needed to take action soon on a lease extension. Ben was able to extend his lease just in the nick of time last May. Ben and the landlord eventually agreed on an amount of £5,500 . If he had missed the deadline, the premium would have become more costly by at least £850.
Dr Ryan Jackson moved into a recently refurbished apartment in West Thurrock in August 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in West Thurrock with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed monthly. The lease ran out on 10 February 2095. Taking into account 70 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 not including costs.
An example of a Lease Extension decision for a West Thurrock property 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 was 76 years.