When it comes to long leasehold premises in Thornton, you effectively rent it for a certain amount 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 think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Leasehold owners in Thornton with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | |
| Santander | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Thornton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Thornton valuers.
Jackson was the the leasehold owner of a conversion apartment in Thornton being marketed with a lease of fraction over fifty eight years outstanding. Jackson on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Dr E Bertrand took over the lease of a purpose-built flat in Thornton in July 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Thornton with an extended lease were worth £275,000. The average amount of ground rent was £45 billed quarterly. The lease ended in 2095. Given that there were 69 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2012 we were phoned by Dr N Hernández who, having owned a ground floor flat in Thornton in November 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable properties in Thornton with an extended lease were in the region of £216,000. The average amount of ground rent was £60 billed yearly. The lease finished on 15 July 2084. Taking into account 58 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.