The only way is down when it comes to Thorne lease terms. Thorne flats that have a lease term lower than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Thorne with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Thorne 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 lawyer we work with provide it.
Following lengthy correspondence with the freeholder of her leasehold apartment in Thorne, Amber commenced the lease extension process as the eighty year deadline was rapidly approaching. The transaction was finalised in June 2014. The landlord’s charges were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. A Moreau who, having was assigned a lease of a garden apartment in Thorne in October 2007. The question was if we could approximate the premium would be for a ninety year lease extension. Similar premises in Thorne with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 billed annually. The lease concluded on 15 July 2082. Considering the 56 years outstanding we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
Last Spring we were phoned by Dr Alex Stewart , who acquired a first floor apartment in Thorne in June 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Thorne with 100 year plus lease were valued about £237,600. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish on 16 October 2093. Taking into account 67 years unexpired we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.