The market value of Thornton Cleveleys leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is below than 80 years
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging 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 relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful discussions with the landlord of her garden flat in Thornton Cleveleys, Lucy commenced the lease extension process as the eighty year threshold was rapidly coming. The transaction was concluded in February 2006. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were called by Ms U Morel who, having owned a first floor flat in Thornton Cleveleys in July 2001. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Thornton Cleveleys with a long lease were valued around £225,400. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed in 2090. Given that there were 64 years as a residual term we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including expenses.
In 2009 we were e-mailed by Dr M Davies who, having acquired a one bedroom apartment in Thornton Cleveleys in February 1999. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative properties in Thornton Cleveleys with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out in 2101. Considering the 75 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.