When it comes to residential leasehold property in West Thurrock, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in West Thurrock with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than 80 years left, under the current statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in West Thurrock with in excess of 100 years outstanding 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in West Thurrock can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 West Thurrock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Riley, came critically near to the 80-year threshold with the lease on his basement flat in West Thurrock. In buying his flat twenty years previously, the lease term was of no significance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Riley was able to extend his lease just under the wire in September. Riley and the landlord subsequently settled on an amount of £6,000 . If the lease had gone below eighty years, the sum would have increased by a minimum £1,025.
In 2010 we were approached by Mr Arthur Kelly who, having completed a purpose-built apartment in West Thurrock in February 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in West Thurrock with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 invoiced monthly. The lease lapsed in 2076. Having 50 years remaining we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a West Thurrock premises 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 affected 13 flats. The number of years remaining on the existing lease(s) was 76 years.