For those whose Thornbury home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom that a property with more than 100 years unexpired lease term 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 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Thornbury,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thornbury valuers.
Half a year ago Max, started to get near to the 80-year threshold with the lease on his garden apartment in Thornbury. In buying his property 18 years ago, the unexpired term was of minimal bearing. Luckily, he recognised he needed to take steps soon on a lease extension. Max arranged for a lease extension just under the wire in July. Max and the freeholder via the managing agents eventually settled on a premium of £5,500 . If the lease had dipped below 80 years, the price would have become more costly by at least £1,050.
In 2014 we were e-mailed by Mr and Mrs. V King who, having was assigned a lease of a purpose-built flat in Thornbury in October 2010. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Thornbury with an extended lease were worth £260,200. The average amount of ground rent was £65 collected every twelve months. The lease ended in 2092. Considering the 66 years remaining we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus fees.
In 2010 we were called by Ms Alicia Scott who, having bought a newly refurbished apartment in Thornbury in May 1996. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical flats in Thornbury with a long lease were valued about £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease concluded on 9 September 2081. Having 55 years outstanding we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus legals.