As the the remaining lease term of a Thorne domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Thorne will qualify for this right; nevertheless a conveyancer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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 |
| Yorkshire Building Society | 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. |
Using our service will provide you better control over the value of your Thorne leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Oliver, came very near to the 80-year mark with the lease on his garden apartment in Thorne. Having bought his home two decades ago, the unexpired term was of little relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Oliver was able to extend his lease just under the wire in January. Oliver and the landlord in the end settled on sum of £6,000 . If he had missed the deadline, the sum would have increased by at least £950.
Mr Eli Davies moved into a studio apartment in Thorne in July 2010. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Thorne with a long lease were valued around £245,000. The average amount of ground rent was £50 collected quarterly. The lease ran out in 2094. Having 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2010 we were called by Mrs V Vincent who, having purchased a purpose-built apartment in Thorne in May 2002. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Thorne with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 billed monthly. The lease end date was on 15 October 2105. Having 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.