Thornaby residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure 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.
Half a year ago Blake, came seriously near to the eighty-year mark with the lease on his leasehold apartment in Thornaby. In buying his property 18 years previously, the length of the lease was of no concern. by good luck, he became aware that he would soon be paying an escalated premium for Extending the lease. Blake arranged for a lease extension just under the wire last June. Blake and the landlord eventually settled on a premium of £5,000 . If the lease had gone below eighty years, the premium would have escalated by at least £875.
Last Spring we were contacted by Mr and Mrs. G Nelson , who was assigned a lease of a garden apartment in Thornaby in April 1998. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in Thornaby with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 billed annually. The lease elapsed in 2091. Taking into account 66 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.
In 2013 we were e-mailed by Mr and Mrs. Y Pérez who, having took over the lease of a purpose-built apartment in Thornaby in August 2000. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical residencies in Thornaby with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2102. Given that there were 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.