Thornaby on Tees leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Thornaby on Tees enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Thornaby on Tees you should check if your lease has between 70 and 90 years left. There are good reasons why a Thornaby on Tees leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Thornaby on Tees with over one hundred years remaining on the lease are sometimes referred to as ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Thornaby on Tees can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Thornaby on Tees lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron owned a conversion apartment in Thornaby on Tees on the market with a lease of just over 61 years outstanding. Aaron on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Aaron to invoke his statutory right. Aaron procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Ms Freya Lee who, having was assigned a lease of a studio flat in Thornaby on Tees in September 2008. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar residencies in Thornaby on Tees with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed on 4 March 2101. Considering the 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2013 we were e-mailed by Ms Victoria Campbell who, having owned a basement flat in Thornaby on Tees in January 2007. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical properties in Thornaby on Tees with 100 year plus lease were in the region of £252,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed on 1 January 2090. Considering the 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of costs.