As the length of the unexpired term of a Thornton Cleveleys residential lease diminished so does its value and therefore the value of your property. If the lease has, beyond 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Thornton Cleveleys will qualify for this right; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Thornton Cleveleys with over 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 will provide you better control over the value of your Thornton Cleveleys leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley owned a high value apartment in Thornton Cleveleys on the market with a lease of just over 72 years outstanding. Finley on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Mr and Mrs. B Morris took over the lease of a garden flat in Thornton Cleveleys in April 2000. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Thornton Cleveleys with 100 year plus lease were in the region of £173,800. The average amount of ground rent was £65 billed annually. The lease elapsed in 2080. Given that there were 55 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.
In 2013 we were called by Mr and Mrs. P Ramírez who, having moved into a first floor apartment in Thornton Cleveleys in May 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Thornton Cleveleys with an extended lease were worth £235,200. The average amount of ground rent was £45 collected yearly. The lease ran out in 2091. Having 66 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.