Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Thornhill. Clearly, the term of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Thornhill have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due attention before putting off your Thornhill lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
Lease extensions in Thornhill can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Thornhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold proprietor of a conversion flat in Thornhill on the market with a lease of a few days over 72 years unexpired. Lucas on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lucas to invoke his statutory right. Lucas procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were contacted by Mrs U André who, having acquired a recently refurbished apartment in Thornhill in April 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Thornhill with 100 year plus lease were worth £248,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease termination date was on 19 May 2088. Considering the 63 years left we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.
Mr Dylan Johnson bought a studio flat in Thornhill in February 2005. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Thornhill with an extended lease were valued around £181,600. The mid-range ground rent payable was £55 collected per annum. The lease ran out in 2077. Having 52 years unexpired we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.