Thornhill leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease drops lower than eighty years - otherwise a higher premium will be due. Flat owners in Thornhill will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
|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.|
|Coventry Building Society||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.|
|Leeds Building Society||85 years remaing from the start 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.|
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 conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her purpose-built apartment in Thornhill, Niamh started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The transaction was finalised in August 2007. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Mr and Mrs. E François who, having bought a recently refurbished flat in Thornhill in April 2002. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Thornhill with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 6 November 2091. Having 70 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
In 2011 we were phoned by Mr and Mrs. H Peterson who, having completed a one bedroom apartment in Thornhill in November 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Thornhill with a long lease were valued about £223,400. The average ground rent payable was £60 invoiced per annum. The lease ended on 5 May 2080. Considering the 59 years left we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.