There is no doubt about it a leasehold property in Thornbury is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Thornbury will qualify for this right; that being said a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Thornbury can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 Thornbury 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 Noah, came seriously near to the 80-year mark with the lease on his purpose- built apartment in Thornbury. Having purchased his home 18 years ago, the length of the lease was of little significance. Luckily, he recognised he needed to take action soon on a lease extension. Noah was able to extend his lease at the eleventh hour last April. Noah and the freeholder via the management company subsequently settled on a premium of £5,500 . If he not met the deadline, the price would have escalated by a minimum £1,075.
Ms Alisha Jones moved into a first floor flat in Thornbury in July 2011. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Similar homes in Thornbury with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced quarterly. The lease finished in 2103. Considering the 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
In 2014 we were phoned by Mr and Mrs. Y Adams who, having purchased a purpose-built apartment in Thornbury in September 2009. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Thornbury with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed per annum. The lease expired on 28 January 2092. Taking into account 67 years remaining we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including fees.