There is no doubt about it a leasehold flat or house in Thornbury is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Thornbury will qualify for this right; that being said a conveyancer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Thornbury with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Thornbury can be a difficult process. We recommend you get professional help 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.
Daniel was the the leasehold proprietor of a conversion apartment in Thornbury on the market with a lease of a little over 59 years outstanding. Daniel on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Mrs Isabella García purchased a studio flat in Thornbury in October 2000. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar flats in Thornbury with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended in 2076. Having 50 years remaining we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
Last month we were called by Ms Melissa Roux , who was assigned a lease of a ground floor apartment in Thornbury in May 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Thornbury with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated in 2096. Considering the 70 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.