It’s an underpublicised truth that a Thornhill residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Thornhill property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Thornhill will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, 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. |
| Godiva Mortgages | 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 remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Thornhill can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge dealing with Thornhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the freeholder of her leasehold flat in Thornhill, Isobel commenced the lease extension process as the 80 year deadline was quickly approaching. The lease extension completed in November 2005. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr O Evans , who took over the lease of a ground floor flat in Thornhill in August 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar homes in Thornhill with 100 year plus lease were worth £252,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease came to a finish in 2091. Considering the 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
Dr E Martinez moved into a ground floor flat in Thornhill in April 2012. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Thornhill with a long lease were worth £191,400. The mid-range amount of ground rent was £55 collected annually. The lease ran out in 2080. Given that there were 54 years left we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus expenses.