It’s a harsh truth that a Thornaby on Tees residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Thornaby on Tees property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Most leasehold owners in Thornaby on Tees will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Thornaby on Tees with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Thornaby on Tees,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thornaby on Tees valuers.
George was the the leasehold proprietor of a conversion apartment in Thornaby on Tees on the market with a lease of just over 59 years left. George informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were George to exercise his statutory right. George obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Winter we were phoned by Mr and Mrs. W Davis , who took over the lease of a ground floor apartment in Thornaby on Tees in October 2000. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Identical flats in Thornaby on Tees with a long lease were valued about £166,800. The mid-range amount of ground rent was £50 billed yearly. The lease concluded in 2076. Given that there were 50 years left we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.
Last Autumn we were called by Mr and Mrs. L Adams , who took over the lease of a garden apartment in Thornaby on Tees in April 2001. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative flats in Thornaby on Tees with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease elapsed in 2096. Considering the 70 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.