The market value of Thurrock leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than eighty years
Leasehold properties in Thurrock with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Thurrock can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Thurrock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan owned a 2 bedroom apartment in Thurrock being marketed with a lease of fraction over fifty eight years unexpired. Ethan on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2014 we were approached by Mr and Mrs. I Khan who, having bought a one bedroom flat in Thurrock in May 2006. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative premises in Thurrock with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished in 2079. Considering the 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus costs.
In 2014 we were contacted by Dr Sian Robinson who, having moved into a basement flat in Thurrock in October 2002. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Thurrock with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 billed every twelve months. The lease finished in 2099. Given that there were 74 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.