It’s an underpublicised truth that a Thornhill residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Thornhill property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Most leasehold owners in Thornhill will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Thornhill with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Engaging our service gives you better control over the value of your Thornhill leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Austin, came seriously near to the eighty-year threshold with the lease on his two bedroom flat in Thornhill. Having bought his home twenty years ago, the unexpired term was of little significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Austin extended the lease just in the nick of time last January. Austin and the freeholder subsequently agreed on an amount of £6,000 . If the lease had slipped lower than eighty years, the sum would have gone up by at least £875.
Last Christmas we were approach by Mr M Miller , who owned a first floor flat in Thornhill in April 2006. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar flats in Thornhill with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 billed quarterly. The lease lapsed on 8 November 2089. Taking into account 63 years unexpired we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.
Last Winter we were phoned by Mr Max Nelson , who owned a newly refurbished apartment in Thornhill in February 2001. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative homes in Thornhill with a long lease were in the region of £181,600. The average amount of ground rent was £55 collected quarterly. The lease lapsed in 2078. Taking into account 52 years remaining we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.