Thirsk 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 Thirsk enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Thirsk you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Thirsk flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Thirsk with in excess of 100 years left on the lease are sometimes referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Thirsk,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thirsk valuers.
In the wake of eight months of lengthy discussions with the freeholder of her purpose-built flat in Thirsk, Mia started the lease extension process as the 80 year threshold was quickly advancing. The lease extension was concluded in June 2012. The landlord’s costs were restricted to under 650 GBP.
Mr and Mrs. M Lambert completed a purpose-built apartment in Thirsk in March 1996. We are asked if we could estimate the price could be for a ninety year lease extension. Identical homes in Thirsk with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease concluded on 27 July 2104. Having 79 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Last year we were approach by Mr Rory González , who was assigned a lease of a recently refurbished flat in Thirsk in February 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Thirsk with 100 year plus lease were in the region of £198,400. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2084. Having 59 years remaining we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus professional charges.