Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Thornhill. Clearly, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Thornhill have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give due consideration before delaying your Thornhill lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Thornhill leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Noah, came dangerously near to the eighty-year threshold with the lease on his garden apartment in Thornhill. In buying his property 19 years previously, the length of the lease was of minimal relevance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Noah was able to extend his lease just under the wire in July. Noah and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he had missed the deadline, the price would have escalated by at least £875.
In 2014 we were e-mailed by Ms Holly Díaz who, having acquired a one bedroom flat in Thornhill in April 2004. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Thornhill with an extended lease were worth £233,200. The average ground rent payable was £60 collected annually. The lease finished on 21 March 2087. Considering the 61 years remaining we calculated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.
Ms Erin Morgan completed a ground floor apartment in Thornhill in May 2006. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Thornhill with a long lease were valued around £166,800. The mid-range ground rent payable was £50 collected monthly. The lease termination date was in 2076. Given that there were 50 years outstanding we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including costs.