Unfortunately that a Thornbury residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Thornbury property prices.Once your lease gets to 85ish years, you need to start considering 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 falls under 80 years - otherwise a higher amount will be due. The majority of flat owners in Thornbury will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 secure guidance from a conveyancer 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 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.
Subsequent to protracted discussions with the landlord of her two bedroom flat in Thornbury, Millie initiated the lease extension process as the eighty year deadline was fast nearing. The lease extension was concluded in May 2011. The freeholder’s fees were kept to an absolute minimum.
Mrs Freya King bought a studio flat in Thornbury in September 2009. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Identical properties in Thornbury with 100 year plus lease were worth £206,200. The average amount of ground rent was £60 billed annually. The lease expired on 10 August 2082. Having 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Ms V Jackson bought a first floor flat in Thornbury in January 2011. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Thornbury with a long lease were worth £300,000. The average ground rent payable was £50 invoiced yearly. The lease ended on 20 July 2102. Given that there were 76 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.