When it comes to domestic leasehold property in Thirsk, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Residents in Thirsk with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| TSB |
The conveyancers that we work with handle Thirsk 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 lawyer we work with provide it.
Noah owned a conversion flat in Thirsk on the market with a lease of a little over sixty years remaining. Noah informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were contacted by Dr Harry Richardson who, having acquired a one bedroom flat in Thirsk in July 2009. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Thirsk with a long lease were worth £264,000. The average amount of ground rent was £60 invoiced monthly. The lease finished in 2079. Having 53 years as a residual term we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including expenses.
Last year we were phoned by Ms Daisy Phillips , who bought a recently refurbished flat in Thirsk in June 2007. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable properties in Thirsk with an extended lease were valued around £225,400. The average amount of ground rent was £45 collected yearly. The lease concluded in 2090. Taking into account 64 years remaining we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of fees.