It’s a harsh certainty that a Thorne residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Thorne property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Most flat owners in Thorne will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Following protracted correspondence with the freeholder of her two bedroom flat in Thorne, Jessica commenced the lease extension process as the 80 year mark was fast coming. The transaction was concluded in May 2008. The freeholder’s charges were negotiated to about 700 pounds.
Mrs V Hernández acquired a garden apartment in Thorne in January 1999. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Thorne with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2096. Considering the 70 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Summer we were contacted by Mr and Mrs. J Girard , who bought a recently refurbished flat in Thorne in May 1995. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable premises in Thorne with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 billed yearly. The lease expired in 2076. Given that there were 50 years outstanding we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including fees.