With a long leasehold premises in Thornton Heath, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years remaining. Leasehold owners in Thornton Heath with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years outstanding, under the current Act the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you better control over the value of your Thornton Heath leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Teddy, came dangerously near to the 80-year mark with the lease on his garden flat in Thornton Heath. In buying his home two decades ago, the lease term was of no significance. As luck would have it, he realised he needed to take action soon on Extending the lease. Teddy arranged for a lease extension just ahead of time in July. Teddy and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If he had missed the deadline, the premium would have increased by a minimum £1,000.
Last Christmas we were phoned by Ms K Gómez , who owned a ground floor apartment in Thornton Heath in November 2002. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical residencies in Thornton Heath with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 collected per annum. The lease concluded in 2083. Taking into account 58 years remaining we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.
An example of a Lease Extension decision for a Thornton Heath residence 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 remaining number of years on the lease was 69.46 years.