When it comes to long leasehold premises in Thornton Heath, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Anyone in Thornton Heath with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has less than eighty years outstanding, under the relevant Act the landlord can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Thornton Heath with more than 100 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Thornton Heath leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.
16 months ago Tyler, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Thornton Heath. Having bought his flat twenty years previously, the unexpired term was of no interest. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Tyler was able to extend his lease just under the wire in March. Tyler and the freeholder subsequently settled on a premium of £5,000 . If he not met the deadline, the price would have escalated by a minimum £975.
In 2012 we were approached by Mr and Mrs. B Díaz who, having owned a ground floor apartment in Thornton Heath in February 2012. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative homes in Thornton Heath with 100 year plus lease were worth £210,000. The average ground rent payable was £50 invoiced yearly. The lease terminated on 27 October 2106. Considering the 80 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
An example of a Lease Extension case for a Thornton Heath flat is Ground Floor Flat 14 Lodge Road in October 2013. the tribunal held that the price payable for the acquisition of the extended lease of the property should be £12,590 .00 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 69.46 years.