It’s a harsh certainty that a Thornbury residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Thornbury property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Thornbury will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Thornbury can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Thornbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the landlord of her two bedroom flat in Thornbury, Tia started the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction was finalised in June 2012. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr Ella Lambert , who owned a garden flat in Thornbury in January 2001. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative premises in Thornbury with an extended lease were valued around £174,200. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed in 2077. Taking into account 51 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
Last Winter we were approach by Dr Ollie Cox , who purchased a one bedroom apartment in Thornbury in August 2000. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparative premises in Thornbury with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced monthly. The lease expiry date was in 2097. Given that there were 71 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.