Thurrock residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Thurrock leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Lewis was the the leasehold proprietor of a high value apartment in Thurrock being sold with a lease of a little over 61 years outstanding. Lewis informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr N Moreau took over the lease of a basement apartment in Thurrock in May 2003. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar residencies in Thurrock with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish in 2094. Having 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Last Christmas we were contacted by Mr and Mrs. W Stewart , who was assigned a lease of a studio apartment in Thurrock in January 1999. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Thurrock with an extended lease were worth £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished on 20 July 2083. Given that there were 58 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.