The market value of Thorne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a property 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 property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Thorne leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold proprietor of a conversion apartment in Thorne being marketed with a lease of just over 72 years remaining. Max on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were phoned by Dr N Bell , who bought a basement apartment in Thorne in October 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparable premises in Thorne with a long lease were valued around £270,000. The average amount of ground rent was £55 billed annually. The lease lapsed on 24 August 2101. Considering the 75 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Last Summer we were phoned by Mr and Mrs. V Anderson , who moved into a garden flat in Thorne in June 2006. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Thorne with an extended lease were in the region of £168,800. The average amount of ground rent was £60 billed every twelve months. The lease finished in 2081. Taking into account 55 years outstanding we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.