With a residential leasehold premises in Thornaby, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Thornaby with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the current Act the landlord can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
Lender | Requirement |
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Bank of Scotland | 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. |
Lloyds TSB Scotland | 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. |
Lease extensions in Thornaby can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Thornaby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Cameron, came dangerously near to the eighty-year threshold with the lease on his one bedroom apartment in Thornaby. Having bought his flat 19 years previously, the unexpired term was of no concern. Luckily, he noticed he needed to take action soon on a lease extension. Cameron extended the lease just in the nick of time in June. Cameron and the landlord subsequently settled on the final figure of £6,000 . If the lease had slid to less than eighty years, the sum would have become more exhorbitant by at least £900.
In 2013 we were approached by Mr and Mrs. L Cox who, having acquired a garden flat in Thornaby in May 2003. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Similar flats in Thornaby with a long lease were in the region of £173,800. The mid-range ground rent payable was £60 collected monthly. The lease concluded in 2079. Given that there were 55 years unexpired we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
Last Autumn we were contacted by Mr and Mrs. T Ramírez , who owned a garden flat in Thornaby in April 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative flats in Thornaby with an extended lease were in the region of £235,200. The average amount of ground rent was £45 billed every twelve months. The lease ended on 12 March 2090. Taking into account 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.