Thornbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Thornbury enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Thornbury you really ought to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Thornbury leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 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 a wealth of experience procuring Thornbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Leo, started to get near to the 80-year mark with the lease on his leasehold apartment in Thornbury. In buying his home 18 years ago, the unexpired term was of no interest. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Leo arranged for a lease extension just in the nick of time last August. Leo and the landlord subsequently settled on sum of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,100.
Mr R Bonnet bought a one bedroom flat in Thornbury in July 2006. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Thornbury with an extended lease were worth £181,600. The average amount of ground rent was £55 invoiced annually. The lease expiry date was on 28 January 2077. Given that there were 52 years outstanding we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.
In 2012 we were called by Dr Matthew Campbell who, having completed a ground floor flat in Thornbury in April 2003. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Thornbury with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease expiry date was on 23 August 2097. Taking into account 72 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.