Thornton Heath leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Thornton Heath will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Thornton Heath with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Thornton Heath can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 procuring Thornton Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a conversion flat in Thornton Heath on the market with a lease of fraction over fifty eight years remaining. Felix on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Felix to invoke his statutory right. Felix obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Ms Gemma García was assigned a lease of a one bedroom apartment in Thornton Heath in January 1995. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar homes in Thornton Heath with 100 year plus lease were valued about £174,200. The average amount of ground rent was £55 invoiced quarterly. The lease ran out on 17 October 2077. Having 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired residue of the current lease was 69.46 years.