The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Thorne have the right to extend the lease for an additional 90 years under legislation. Do give careful consideration before delaying your Thorne lease extension. Putting off that expense now simply escalates the premium you will eventually have to pay for a lease extension.
Leasehold premises in Thorne with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Thorne leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Isaac, started to get close to the 80-year threshold with the lease on his studio apartment in Thorne. Having bought his home two decades ago, the length of the lease was of little concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Isaac arranged for a lease extension at the eleventh hour last September. Isaac and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had fallen lower than 80 years, the sum would have become more exhorbitant by a minimum £950.
Last Autumn we were contacted by Mrs Robyn Carter , who completed a one bedroom flat in Thorne in April 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Thorne with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease termination date was on 15 February 2098. Having 73 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Mrs R Murphy was assigned a lease of a one bedroom apartment in Thorne in May 1996. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Thorne with an extended lease were worth £264,000. The average ground rent payable was £60 billed annually. The lease finished on 14 March 2078. Having 53 years outstanding we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.