Thirsk leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Flat owners in Thirsk will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
George was the the leasehold owner of a conversion apartment in Thirsk being marketed with a lease of a little over 59 years outstanding. George on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were George to invoke his statutory right. George procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were called by Mr and Mrs. O Watson who, having was assigned a lease of a first floor flat in Thirsk in March 2000. The question was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Thirsk with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 invoiced per annum. The lease elapsed on 20 November 2099. Having 74 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Dr I González completed a first floor flat in Thirsk in June 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Thirsk with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2079. Given that there were 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of expenses.