There is no doubt about it a leasehold property in Thornhill is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Thornhill will qualify for this right; nevertheless a conveyancer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Thornhill with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 get 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 a wealth of experience 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.
Archie was the the leasehold proprietor of a high value apartment in Thornhill being marketed with a lease of fraction over 61 years left. Archie informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Archie to invoke his statutory right. Archie procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr Stanley Ali was assigned a lease of a basement apartment in Thornhill in April 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable flats in Thornhill with a long lease were in the region of £300,000. The average ground rent payable was £50 billed annually. The lease concluded in 2100. Having 75 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Mr and Mrs. Y Bonnet took over the lease of a ground floor flat in Thornhill in August 2003. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable properties in Thornhill with a long lease were valued around £252,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease expiry date was on 25 February 2090. Having 65 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.