For anyone whose Thornton flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Thornton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the freeholder of her studio flat in Thornton, Alisha initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was concluded in November 2007. The landlord’s charges were restricted to slightly above 550 pounds.
Last February we were called by Dr Zachary Anderson , who was assigned a lease of a purpose-built flat in Thornton in October 2010. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Similar homes in Thornton with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 billed annually. The lease expired in 2083. Taking into account 57 years left we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
Last month we were called by Mr R Lambert , who owned a studio flat in Thornton in May 2008. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Thornton with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed on 3 March 2103. Having 77 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.