As the length of the unexpired term of a Thornton Heath domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Thornton Heath will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The lawyers that we work with procure Thornton Heath 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.
Off the back of protracted negotiations with the freeholder of her first floor flat in Thornton Heath, Freya started the lease extension process just as her lease was nearing the crucial 80-year mark. The legal work completed in November 2007. The landlord’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Mrs S Martínez who, having moved into a ground floor flat in Thornton Heath in November 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Identical homes in Thornton Heath with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 16 July 2094. Taking into account 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
An example of a Lease Extension decision for a Thornton Heath property is Ground Floor Flat 14 Lodge Road in October 2013. the tribunal held that the price payable for the acquisition of the extended lease of the property should be £12,590 .00 This case affected 1 flat. The unexpired term was 69.46 years.