There is no doubt about it a leasehold property in Thornbury is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less 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 primary reason why you should extend the lease without delay. Many flat owners in Thornbury will meet the qualifying criteria; however a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Thornbury with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Thornbury,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thornbury valuers.
Subsequent to unsuccessful correspondence with the freeholder of her studio flat in Thornbury, Emma started the lease extension process as the eighty year threshold was rapidly approaching. The lease extension was concluded in April 2008. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. J Ricardo who, having took over the lease of a first floor flat in Thornbury in October 2009. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Thornbury with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed per annum. The lease lapsed on 27 July 2086. Having 61 years outstanding we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including expenses.
In 2011 we were called by Dr Yasmin Cooper who, having moved into a one bedroom apartment in Thornbury in February 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical premises in Thornbury with a long lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced annually. The lease concluded on 15 April 2075. Considering the 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.