Thornbury leases on residential deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Thornbury will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Thornbury,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thornbury valuers.
Last October Reuben, started to get near to the eighty-year threshold with the lease on his first floor apartment in Thornbury. In buying his flat two decades ago, the length of the lease was of minimal importance. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Reuben was able to extend his lease at the eleventh hour in July. Reuben and the freeholder via the management company eventually settled on a premium of £5,500 . If the lease had descended lower than 80 years, the sum would have increased by a minimum £1,100.
In 2011 we were called by Mr and Mrs. T Moreau who, having completed a one bedroom apartment in Thornbury in August 2008. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Identical flats in Thornbury with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed yearly. The lease ran out on 25 June 2099. Taking into account 73 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2009 we were e-mailed by Ms Francesca Cox who, having took over the lease of a studio flat in Thornbury in October 2000. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical residencies in Thornbury with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed on 9 February 2088. Taking into account 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.