On the balance of probabilities where you own a flat in West Thurrock you actually own a long leasehold interest over your property
Leasehold properties in West Thurrock with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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 conveyancer we work with provide it.
Last Winter Gabriel, started to get near to the eighty-year mark with the lease on his two bedroom apartment in West Thurrock. Having purchased his home two decades ago, the unexpired term was of minimal bearing. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Gabriel extended the lease just under the wire last July. Gabriel and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If the lease had fallen below 80 years, the amount would have gone up by at least £850.
In 2014 we were contacted by Mr Tyler García who, having was assigned a lease of a studio flat in West Thurrock in March 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable flats in West Thurrock with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 invoiced monthly. The lease ran out on 15 February 2084. Having 59 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.
An example of a Lease Extension case 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 number of years remaining on the existing lease(s) was 76 years.