The only way is down when it comes to Thornaby lease terms. Thornaby properties that have a remaining term lower than 80 years will drop in market price even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Thornaby leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year John, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Thornaby. In buying his home twenty years ago, the unexpired term was of minimal concern. by good luck, he noticed he needed to take action soon on Extending the lease. John extended the lease at the eleventh hour in January. John and the landlord eventually agreed on sum of £6,000 . If the lease had slipped to less than eighty years, the price would have become more costly by a minimum £850.
Mr and Mrs. E Campbell owned a studio apartment in Thornaby in November 1997. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar properties in Thornaby with 100 year plus lease were worth £242,600. The average ground rent payable was £45 collected quarterly. The lease came to a finish in 2092. Taking into account 67 years remaining we calculated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of fees.
Dr U Ward was assigned a lease of a first floor flat in Thornaby in June 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical properties in Thornaby with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish in 2103. Taking into account 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.