Unfortunately that a Thirsk residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Thirsk property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Thirsk will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Thirsk with over 100 years unexpired 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Thirsk,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thirsk valuers.
Blake was the the leasehold owner of a studio flat in Thirsk being marketed with a lease of a few days over 59 years outstanding. Blake on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
Mr S Jackson moved into a basement apartment in Thirsk in August 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Thirsk with an extended lease were worth £173,800. The average ground rent payable was £65 invoiced per annum. The lease ended on 25 May 2080. Having 55 years left we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.
Dr S Rodríguez owned a studio flat in Thirsk in November 2002. The question was if we could estimate the price would be to extend the lease by 90 years. Comparative premises in Thirsk with an extended lease were valued about £235,200. The mid-range ground rent payable was £45 collected per annum. The lease expired in 2091. Having 66 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.