Thornhill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Thornhill residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Thornhill you must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Thornhill with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Thornhill,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thornhill valuers.
After lengthy negotiations with the freeholder of her two bedroom apartment in Thornhill, Maisie commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction completed in February 2007. The freeholder’s fees were restricted to slightly above 450 GBP.
Dr P Moore owned a first floor flat in Thornhill in July 2009. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Thornhill with an extended lease were in the region of £260,200. The average amount of ground rent was £65 collected per annum. The lease ended in 2092. Considering the 66 years left we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of expenses.
In 2014 we were contacted by Mr and Mrs. P Jackson who, having took over the lease of a ground floor apartment in Thornhill in September 2000. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable properties in Thornhill with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 27 January 2081. Having 55 years left we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.