The closer a residential lease in West Thurrock nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in West Thurrock will meet the qualifying criteria; nevertheless a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
In 2014 Lewis, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in West Thurrock. Having bought his home two decades ago, the unexpired term was of no importance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Lewis arranged for a lease extension just in the nick of time last August. Lewis and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had descended below 80 years, the sum would have become more costly by at least £1,150.
In 2014 we were approached by Ms Leah Bonnet who, having bought a ground floor apartment in West Thurrock in November 2011. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative residencies in West Thurrock with 100 year plus lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended on 21 September 2093. Given that there were 69 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
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 related to 13 flats. The number of years remaining on the existing lease(s) was 76 years.