For those whose Thornaby home is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
|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.|
|Lloyds TSB Scotland|| Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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.|
Lease extensions in Thornaby can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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.
Evan owned a studio apartment in Thornaby being sold with a lease of a little over 59 years unexpired. Evan informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Evan to invoke his statutory right. Evan 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.
Last Winter we were contacted by Mr and Mrs. U Ali , who completed a studio flat in Thornaby in September 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Thornaby with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 collected per annum. The lease terminated in 2074. Given that there were 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus costs.
Mrs O Bonnet took over the lease of a studio apartment in Thornaby in October 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Thornaby with 100 year plus lease were valued around £220,400. The mid-range amount of ground rent was £45 invoiced per annum. The lease ran out in 2085. Taking into account 64 years left we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.