Main reasons to commence your Thornton lease extension

Top reasons for lease extension now:

A Thornton leasehold property depreciates with the years remaining on the lease.

Thornton leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Thornton will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Thornton with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not finance a property on a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold property. Some will simply not lend at all once an unexpired lease term goes below a specified unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant if you are seeking to refinance your Thornton home.

Get in touch with one of our Thornton lease extension solicitors or enfranchisement solicitors

Using our service gives you increased control over the value of your Thornton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Thornton Lease Extension Example Cases:

Jonathan, Thornton, West Yorkshire

In recent months Jonathan, started to get close to the 80-year mark with the lease on his two bedroom flat in Thornton. Having bought his property twenty years previously, the unexpired term was of no significance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Jonathan extended the lease just under the wire last May. Jonathan and the landlord who owned the flat above ultimately agreed on the final figure of £6,000 . If the lease had gone lower than eighty years, the amount would have gone up by a minimum £950.

Thornton case:

Last year we were approach by Mr Ryan Mitchell , who was assigned a lease of a studio apartment in Thornton in July 2006. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative homes in Thornton with a long lease were valued about £166,800. The average ground rent payable was £50 billed per annum. The lease came to a finish on 13 October 2076. Considering the 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus costs.

Thornton case:

In 2011 we were called by Mr and Mrs. Y Baker who, having was assigned a lease of a one bedroom apartment in Thornton in February 2003. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar residencies in Thornton with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 collected quarterly. The lease expiry date was on 4 April 2096. Considering the 70 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.