When it comes to domestic leasehold premises in Thornhill, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Thornhill with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has under 80 years left, under the current legislation the landlord can calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Thornhill leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Seth, started to get near to the eighty-year threshold with the lease on his first floor apartment in Thornhill. Having bought his home twenty years ago, the lease term was of little relevance. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Seth was able to extend his lease just ahead of time in August. Seth and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £900.
In 2010 we were phoned by Dr E Ramírez who, having purchased a first floor apartment in Thornhill in May 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Thornhill with an extended lease were in the region of £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease finished on 27 September 2104. Given that there were 79 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
Mr and Mrs. B Bernard acquired a ground floor flat in Thornhill in November 2008. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical premises in Thornhill with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2094. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.