Thornaby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Thornaby tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Thornaby you would be well advised to check if your lease has between 70 and 90 years left. There are compelling reasons why a Thornaby leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold premises in Thornaby with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Thornaby can be a difficult process. We recommend you get 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 a wealth of experience dealing with Thornaby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb was the the leasehold owner of a 2 bedroom apartment in Thornaby on the market with a lease of fraction over 59 years outstanding. Caleb on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2012 we were approached by Dr Arthur Murphy who, having acquired a first floor flat in Thornaby in October 1995. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable homes in Thornaby with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 billed annually. The lease finished in 2093. Taking into account 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last Christmas we were approach by Dr Maisie Baker , who was assigned a lease of a studio apartment in Thornaby in July 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Thornaby with an extended lease were in the region of £285,000. The average ground rent payable was £55 billed yearly. The lease expired in 2104. Considering the 79 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.