When it comes to long leasehold property in Thornton, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Thornton with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has less than 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Thornton 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 conveyancer we work with provide it.
In 2014 Joshua, came very near to the 80-year mark with the lease on his basement flat in Thornton. In buying his flat 18 years ago, the unexpired term was of minimal relevance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Joshua was able to extend his lease just ahead of time last March. Joshua and the freeholder via the managing agents ultimately agreed on the final figure of £5,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £975.
In 2012 we were approached by Ms N Ricardo who, having was assigned a lease of a newly refurbished flat in Thornton in February 2010. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable flats in Thornton with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed annually. The lease ran out on 25 June 2080. Given that there were 55 years as a residual term we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.
Last Winter we were phoned by Mr Ali Robinson , who moved into a studio apartment in Thornton in February 2012. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical flats in Thornton with 100 year plus lease were valued around £295,000. The average ground rent payable was £50 billed quarterly. The lease finished on 26 July 2100. Having 75 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.