West Thurrock leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in West Thurrock enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in West Thurrock you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a West Thurrock flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in West Thurrock with over one hundred years unexpired 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better 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 want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold proprietor of a high value apartment in West Thurrock being marketed with a lease of a little over 59 years remaining. Oliver informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were called by Ms V Patel who, having purchased a purpose-built apartment in West Thurrock in February 2011. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative premises in West Thurrock with an extended lease were worth £290,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed on 23 October 2106. Given that there were 80 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
An example of a Lease Extension matter before the tribunal for a West Thurrock residence 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.