The market value of Thornhill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than eighty years
Leasehold premises in Thornhill with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Retaining our service gives you increased control over the value of your Thornhill leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a conversion apartment in Thornhill being sold with a lease of just over sixty years left. Owen informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last March we were approach by Mr and Mrs. F Laurent , who completed a garden apartment in Thornhill in August 2011. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar premises in Thornhill with an extended lease were worth £265,200. The average amount of ground rent was £65 invoiced quarterly. The lease ended in 2091. Having 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.
Last Autumn we were called by Mr and Mrs. W Hernández , who moved into a studio apartment in Thornhill in August 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Thornhill with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected annually. The lease termination date was in 2080. Given that there were 55 years unexpired we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus fees.