Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Thirsk. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Thirsk have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful attention before delaying your Thirsk lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold properties in Thirsk with more than one hundred years remaining 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Thirsk,the lease extension experts 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 Thirsk valuers.
Sebastian was the the leasehold proprietor of a studio flat in Thirsk being marketed with a lease of fraction over 61 years remaining. Sebastian on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
In 2011 we were approached by Mr Thomas Vincent who, having took over the lease of a purpose-built flat in Thirsk in March 1995. We are asked if we could estimate the price could be for a 90 year lease extension. Identical properties in Thirsk with 100 year plus lease were in the region of £232,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded in 2091. Considering the 65 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.
Last Winter we were called by Mr and Mrs. E Kelly , who purchased a garden flat in Thirsk in November 2005. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Thirsk with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 billed per annum. The lease lapsed on 12 January 2102. Considering the 76 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.