For those whose Thornbury property is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold residencies in Thornbury with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with handle Thornbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After protracted negotiations with the landlord of her garden flat in Thornbury, Molly commenced the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was concluded in July 2015. The landlord’s fees were kept to an absolute minimum.
In 2010 we were phoned by Dr J André who, having purchased a ground floor flat in Thornbury in May 2011. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable residencies in Thornbury with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 billed yearly. The lease terminated on 7 January 2089. Having 63 years outstanding we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus expenses.
Last September we were called by Dr Y Patel , who acquired a garden apartment in Thornbury in October 1998. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Thornbury with a long lease were valued around £181,600. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished in 2078. Having 52 years left we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.