Thornaby on Tees leases on residential deteriorating in value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Thornaby on Tees will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Thornaby on Tees with in excess of one hundred years remaining 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Thornaby on Tees,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thornaby on Tees valuers.
Last October Dexter, started to get close to the 80-year threshold with the lease on his leasehold flat in Thornaby on Tees. Having bought his property two decades ago, the length of the lease was of no interest. Luckily, he noticed he needed to take steps soon on a lease extension. Dexter arranged for a lease extension at the eleventh hour in June. Dexter and the freeholder ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,050.
Mrs Emma Laurent completed a first floor apartment in Thornaby on Tees in November 2011. The question was if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Thornaby on Tees with 100 year plus lease were worth £205,000. The average ground rent payable was £50 collected annually. The lease came to a finish in 2103. Considering the 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 not including costs.
Dr K Moreau moved into a recently refurbished flat in Thornaby on Tees in April 2006. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in Thornaby on Tees with an extended lease were worth £270,000. The average amount of ground rent was £65 invoiced annually. The lease end date was on 16 September 2093. Given that there were 68 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.