As the length of the unexpired term of a Thornaby domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Thornaby will meet the qualifying criteria; that being said a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Thornaby 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Thornaby can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben was the the leasehold proprietor of a conversion apartment in Thornaby being marketed with a lease of just over fifty eight years remaining. Reuben on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
In 2011 we were e-mailed by Mr Rory Moreau who, having bought a studio apartment in Thornaby in September 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Thornaby with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished on 2 November 2079. Given that there were 54 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.
Last Spring we were e-mailed by Dr N Stewart , who completed a one bedroom apartment in Thornaby in June 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Thornaby with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired on 16 March 2090. Given that there were 65 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.