There is no doubt about it a leasehold flat or house in Thornhill is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Thornhill will qualify for this right; nevertheless a lawyer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Thornhill with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Thornhill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago Muhammad, came dangerously near to the 80-year threshold with the lease on his studio apartment in Thornhill. Having bought his property two decades ago, the lease term was of little importance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Muhammad extended the lease just ahead of time in July. Muhammad and the freeholder via the managing agents subsequently settled on sum of £6,000 . If the lease had slid lower than 80 years, the price would have gone up by a minimum £900.
In 2009 we were approached by Mrs Molly Rogers who, having completed a purpose-built apartment in Thornhill in July 1995. We are asked if we could approximate the price could be to prolong the lease by ninety years. Identical properties in Thornhill with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed on 26 February 2104. Having 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
Last Winter we were contacted by Dr I Sánchez , who purchased a one bedroom flat in Thornhill in March 1998. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Thornhill with an extended lease were worth £267,600. The average ground rent payable was £65 invoiced annually. The lease finished on 8 June 2093. Having 67 years remaining we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.