The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Thornton Heath can extend the lease for an additional 90 years in accordance with legislation. Do think carefully before delaying your Thornton Heath lease extension. Shelving that expense today simply escalates the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Thornton Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Aaron owned a high value apartment in Thornton Heath being sold with a lease of a little over 72 years left. Aaron on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2010 we were called by Mr C Sánchez who, having was assigned a lease of a one bedroom apartment in Thornton Heath in March 2000. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Thornton Heath with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 billed annually. The lease came to a finish in 2093. Having 67 years outstanding we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus expenses.
An example of a Lease Extension matter before the tribunal 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 term as at the valuation date was 69.46 years.