Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Thornbury. Inevitably, the length of lease left reduces over time. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Thornbury have the right to extend the lease for an additional 90 years in accordance with legislation. You should give careful deliberation before putting off your Thornbury lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold premises in Thornbury with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB |
Retaining our service gives you enhanced control over the value of your Thornbury leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold owner of a conversion flat in Thornbury on the market with a lease of fraction over 59 years left. Alex informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder 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 £125 yearly. No ground rent would be due on a lease extension were Alex to exercise his statutory right. Alex procured expert advice and secured an acceptable resolution informally and sell the property.
Dr Lucas Cook acquired a garden flat in Thornbury in October 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Thornbury with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease ended on 16 February 2093. Taking into account 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of costs.
Last Summer we were contacted by Dr Ibrahim Wood , who bought a purpose-built flat in Thornbury in April 2003. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Similar residencies in Thornbury with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 invoiced monthly. The lease terminated on 9 February 2082. Having 56 years left we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.