Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Thorne. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Thorne have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due attention before putting off your Thorne lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Thorne with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Thorne can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Thorne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tommy was the the leasehold proprietor of a studio flat in Thorne being marketed with a lease of a few days over sixty years left. Tommy informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Mr and Mrs. F Brooks completed a studio flat in Thorne in April 2011. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar properties in Thorne with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 15 January 2105. Having 80 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
In 2012 we were approached by Dr Robyn Brown who, having was assigned a lease of a one bedroom flat in Thorne in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical flats in Thorne with a long lease were valued around £200,800. The mid-range ground rent payable was £65 collected annually. The lease ran out on 23 October 2085. Having 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including costs.