The nearer a residential lease in Thornton nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years left 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 consider extending without delay. Many flat owners in Thornton will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In certain 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 conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Thornton can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Thornton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Alfie, came critically close to the eighty-year threshold with the lease on his one bedroom flat in Thornton. Having bought his property twenty years previously, the unexpired term was of little relevance. by good luck, he became aware that he needed to take steps soon on a lease extension. Alfie arranged for a lease extension just in the nick of time in March. Alfie and the landlord ultimately settled on the final figure of £5,500 . If he not met the deadline, the premium would have gone up by at least £875.
Last Spring we were e-mailed by Mr and Mrs. D Ramírez , who took over the lease of a garden flat in Thornton in July 1999. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical homes in Thornton with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 21 July 2078. Having 52 years left we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.
Last year we were contacted by Ms Danielle Vincent , who bought a ground floor apartment in Thornton in October 1996. We are asked if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Thornton with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 invoiced monthly. The lease expiry date was in 2098. Taking into account 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.