There is no doubt about it a leasehold property in Thornaby is a wasting asset as a result of the diminishing lease term. If the lease has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Thornaby will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Thornaby 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.
Trailing protracted discussions with the landlord of her basement flat in Thornaby, Louise started the lease extension process just as her lease was nearing the critical eighty-year threshold. The lease extension was concluded in July 2010. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were called by Ms O López who, having purchased a first floor flat in Thornaby in March 1995. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical residencies in Thornaby with an extended lease were valued about £255,000. The average ground rent payable was £50 billed yearly. The lease termination date was on 28 October 2095. Given that there were 70 years outstanding we estimated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 plus professional charges.
In 2012 we were contacted by Mrs W Williams who, having purchased a ground floor flat in Thornaby in March 2005. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Thornaby with an extended lease were valued around £246,800. The average amount of ground rent was £60 collected every twelve months. The lease ended on 10 September 2075. Given that there were 50 years as a residual term we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.