Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually 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 term of lease remaining reduces over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Thornbury have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Thornbury lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Thornbury can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge 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.
Subsequent to lengthy correspondence with the freeholder of her ground floor flat in Thornbury, Jade commenced the lease extension process just as her lease was coming close to the critical eighty-year mark. The lease extension was concluded in July 2009. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. V Leroy purchased a recently refurbished apartment in Thornbury in July 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Thornbury with a long lease were in the region of £206,200. The mid-range ground rent payable was £55 billed monthly. The lease end date was on 3 April 2081. Considering the 56 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Mrs Maisie Green owned a ground floor apartment in Thornbury in July 2009. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Similar premises in Thornbury with an extended lease were worth £300,000. The mid-range ground rent payable was £50 collected per annum. The lease ended in 2101. Considering the 76 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.