Thornhill leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Thornhill tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Thornhill you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Thornhill leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
Leasehold properties in Thornhill with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Thornhill leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her ground floor apartment in Thornhill, Rosie initiated the lease extension process just as her lease was approaching the crucial 80-year mark. The transaction was concluded in March 2011. The freeholder’s charges were restricted to below 650 pounds.
Dr Harriet Johnson purchased a garden flat in Thornhill in May 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Thornhill with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2099. Having 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Dr D James acquired a purpose-built flat in Thornhill in August 2004. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative residencies in Thornhill with an extended lease were valued around £235,600. The average ground rent payable was £60 billed monthly. The lease finished in 2088. Taking into account 62 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus costs.