On the balance of probabilities if you own a flat in Thornbury you actually own a long leasehold interest over your property
Leasehold residencies in Thornbury with more than 100 years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Thornbury leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
In the wake of eight months of lengthy correspondence with the landlord of her garden apartment in Thornbury, Holly started the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work completed in April 2008. The freeholder’s charges were kept to an absolute minimum.
Mr M Wood took over the lease of a recently refurbished flat in Thornbury in January 2007. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar premises in Thornbury with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 collected quarterly. The lease lapsed in 2078. Given that there were 53 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.
In 2009 we were approached by Dr Kelsey Wilson who, having owned a basement flat in Thornbury in January 2010. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative properties in Thornbury with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed in 2098. Given that there were 73 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.