Unfortunately that a Thornaby residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Thornaby property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Thornaby will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Thornaby with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society |
Regardless of whether you are a tenant or a freeholder in Thornaby,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thornaby valuers.
Nathan owned a conversion apartment in Thornaby being sold with a lease of fraction over 59 years outstanding. Nathan informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last November we were contacted by Mr and Mrs. R Clark , who acquired a ground floor apartment in Thornaby in September 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar residencies in Thornaby with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2089. Considering the 63 years remaining we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including expenses.
Mr and Mrs. S Lefebvre owned a one bedroom apartment in Thornaby in February 1998. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative premises in Thornaby with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease lapsed on 16 July 2100. Given that there were 74 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.