The re-sale value of a leasehold property in Thornhill depends on how long the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded ahead of the eighty year mark. Current legislation enables Thornhill qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Thornhill can be a difficult process. We recommend you procure 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 in-depth market knowledge 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.
Following unsuccessful discussions with the freeholder of her first floor apartment in Thornhill, Amelia started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction was concluded in March 2011. The freeholder’s fees were kept to an absolute minimum.
Dr Freddie Rodríguez took over the lease of a basement apartment in Thornhill in June 2000. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative flats in Thornhill with an extended lease were in the region of £206,200. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2082. Considering the 56 years remaining we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
Last February we were phoned by Mr and Mrs. D Gray , who purchased a garden apartment in Thornhill in June 2001. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Thornhill with a long lease were valued about £200,000. The average ground rent payable was £50 invoiced quarterly. The lease ended in 2103. Given that there were 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.