There is no doubt about it a leasehold flat or house in Thornton Heath is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of one hundred years to run 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 known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Thornton Heath will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Thornton Heath can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
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 dealing with 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.
18 months ago Andrew, came precariously close to the eighty-year mark with the lease on his leasehold apartment in Thornton Heath. Having bought his home 19 years previously, the length of the lease was of no relevance. by good luck, he became aware that he needed to take steps soon on a lease extension. Andrew was able to extend his lease at the eleventh hour last August. Andrew and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he had missed the deadline, the amount would have increased by at least £950.
Mr Hunter Lefebvre completed a one bedroom apartment in Thornton Heath in May 2008. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparative flats in Thornton Heath with 100 year plus lease were worth £166,800. The average ground rent payable was £50 invoiced every twelve months. The lease finished in 2075. Considering the 50 years as a residual term we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.
An example of a Lease Extension decision for a Thornton Heath premises 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.