Thornhill leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher amount will be due. Flat owners in Thornhill will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and formalities 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 over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 will provide 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a conversion flat in Thornhill being sold with a lease of fraction over 59 years left. Ollie on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr O López purchased a first floor flat in Thornhill in April 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar residencies in Thornhill with 100 year plus lease were worth £181,600. The average ground rent payable was £55 collected yearly. The lease finished in 2077. Given that there were 52 years outstanding we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.
Mr and Mrs. N Murphy owned a one bedroom flat in Thornhill in September 1996. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable homes in Thornhill with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed per annum. The lease ran out on 27 May 2098. Considering the 73 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.