Thornaby leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Thornaby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Thornaby you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Thornaby leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Thornaby,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thornaby valuers.
Following lengthy discussions with the landlord of her purpose-built apartment in Thornaby, Nicole commenced the lease extension process as the 80 year mark was swiftly nearing. The transaction was concluded in May 2007. The freeholder’s charges were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. T Lewis , who moved into a garden apartment in Thornaby in April 2007. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable residencies in Thornaby with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected yearly. The lease concluded in 2094. Given that there were 69 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were called by Dr E Roux who, having acquired a first floor apartment in Thornaby in November 1998. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Thornaby with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2105. Given that there were 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.