When it comes to long leasehold property in Thornhill, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Thornhill with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below 80 years left, under the current statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Thornhill with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Thornhill leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her first floor flat in Thornhill, Ashleigh initiated the lease extension process just as the lease was nearing the critical eighty-year mark. The transaction was concluded in November 2011. The freeholder’s charges were negotiated to a tad over six hundred GBP.
In 2014 we were approached by Mr Charlie Girard who, having owned a one bedroom apartment in Thornhill in January 2002. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Thornhill with 100 year plus lease were in the region of £166,800. The mid-range ground rent payable was £50 collected every twelve months. The lease finished on 25 January 2076. Given that there were 50 years remaining we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.
Ms Daisy Vincent was assigned a lease of a ground floor apartment in Thornhill in April 1997. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar homes in Thornhill with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed annually. The lease elapsed in 2096. Taking into account 70 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.