Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Thornhill. Inevitably, the term of lease remaining reduces over time. This is often ignored and only becomes a problem when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Thornhill have the right to extend the lease for an additional 90 years under statute. You should give careful attention before putting off your Thornhill lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Thornhill,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thornhill valuers.
James owned a 2 bedroom flat in Thornhill being marketed with a lease of a few days over 72 years outstanding. James informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Winter we were phoned by Mr R Ali , who moved into a one bedroom apartment in Thornhill in February 2002. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Thornhill with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed on 13 January 2081. Considering the 55 years unexpired we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including professional charges.
Last Christmas we were phoned by Mr and Mrs. S Martinez , who purchased a recently refurbished flat in Thornhill in August 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Thornhill with a long lease were in the region of £295,000. The average ground rent payable was £45 collected yearly. The lease expired on 2 September 2101. Considering the 75 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.