Why you should start your Thornbury lease extension

Why you should commence your Thornbury lease extension today:

Increase your lease and increase your Thornbury property value

As the the remaining lease term of a Thornbury residential lease lessens so does its value and therefore the value of your property. If the residual term has, beyond 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Thornbury will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Thornbury property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly 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.

Mortgage lenders may decide not to finance a property on a short lease

Lending institutions have specific criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once the residual lease term drops below a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years suitable security. As well as this being important when selling, it is also relevant where you are intending to remortgage your Thornbury home.

Get in touch with one of our Thornbury lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Thornbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thornbury valuers.

Thornbury Lease Extension Case Summaries:

Benjamin, Thornbury, Gloucestershire,

Benjamin was the the leasehold proprietor of a high value flat in Thornbury on the market with a lease of a few days over 59 years left. Benjamin on an informal basis contacted his freeholder a well known London-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 subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.

Thornbury case:

Ms T Roux acquired a basement flat in Thornbury in March 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Thornbury with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 collected annually. The lease concluded in 2097. Taking into account 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.

Thornbury case:

Last Summer we were phoned by Mr and Mrs. B Edwards , who bought a first floor flat in Thornbury in June 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Thornbury with an extended lease were worth £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease ran out in 2086. Having 60 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus fees.