Thornhill leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Thornhill will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Thornhill leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her garden apartment in Thornhill, Laura initiated the lease extension process as the eighty year deadline was quickly approaching. The transaction was finalised in March 2008. The freeholder’s fees were negotiated to below 650 GBP.
Dr Dylan Young took over the lease of a one bedroom apartment in Thornhill in August 1998. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Thornhill with a long lease were valued about £191,400. The average amount of ground rent was £55 invoiced monthly. The lease ran out on 28 February 2080. Given that there were 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including professional charges.
Mr and Mrs. L David took over the lease of a one bedroom flat in Thornhill in August 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative flats in Thornhill with an extended lease were valued around £295,000. The average ground rent payable was £45 collected monthly. The lease expired on 19 September 2100. Given that there were 74 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.