Thornhill leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Thornhill will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Thornhill with in excess of 100 years outstanding on the lease are often referred to as ‘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 freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Thornhill 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.
Last Autumn Logan, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Thornhill. Having purchased his flat 19 years previously, the unexpired term was of no bearing. Thankfully, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Logan extended the lease at the eleventh hour in August. Logan and the freeholder subsequently settled on a premium of £5,500 . If the lease had dipped below eighty years, the price would have become more costly by at least £1,150.
Dr Freddie Young completed a ground floor apartment in Thornhill in March 2011. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar flats in Thornhill with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 invoiced every twelve months. The lease concluded on 23 April 2103. Considering the 77 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
In 2012 we were e-mailed by Mr Jamie Cook who, having completed a studio flat in Thornhill in June 2010. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Thornhill with an extended lease were in the region of £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease finished on 13 September 2092. Having 66 years unexpired we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of fees.