Thirsk leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher amount will be payable. Flat owners in Thirsk will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Thirsk,the lease extension solicitors 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.
After lengthy correspondence with the freeholder of her one bedroom flat in Thirsk, Rebecca started the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work was concluded in September 2009. The freeholder’s costs were restricted to approximately 550 pounds.
In 2011 we were phoned by Mr S Walker who, having acquired a basement flat in Thirsk in March 2000. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Thirsk with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2096. Given that there were 70 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
In 2014 we were contacted by Dr Aimee Lefebvre who, having completed a first floor apartment in Thirsk in September 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Thirsk with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 collected monthly. The lease expired in 2076. Taking into account 50 years unexpired we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus fees.