Thornbury leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Thornbury will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Thornbury leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her first floor flat in Thornbury, Megan initiated the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension completed in April 2012. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Dr Stephanie Thomas , who bought a ground floor apartment in Thornbury in June 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable properties in Thornbury with 100 year plus lease were valued about £225,800. The average ground rent payable was £60 invoiced annually. The lease expiry date was on 28 September 2086. Taking into account 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.
Mr Liam Gray bought a one bedroom flat in Thornbury in July 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparable homes in Thornbury with a long lease were valued around £210,000. The average ground rent payable was £50 billed monthly. The lease finished in 2106. Taking into account 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.