On the balance of probabilities where you own a flat in Thorne you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancer we work with provide it.
Kai was the the leasehold owner of a high value apartment in Thorne being sold with a lease of a little over 72 years unexpired. Kai informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Summer we were contacted by Mr and Mrs. L Green , who took over the lease of a garden flat in Thorne in November 1995. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Thorne with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out on 6 September 2089. Considering the 63 years left we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of fees.
In 2014 we were called by Ms T Roux who, having completed a one bedroom apartment in Thorne in September 2009. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Comparable properties in Thorne with an extended lease were valued around £265,000. The average amount of ground rent was £50 billed annually. The lease lapsed on 21 November 2100. Considering the 74 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.