For those whose Thornton Heath home is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in Thornton Heath with in excess of 100 years outstanding on the lease are often referred to as ‘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 justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Thornton Heath can be a difficult process. We recommend you obtain 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 in-depth market knowledge 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.
Last October Stanley, came critically close to the 80-year mark with the lease on his purpose- built flat in Thornton Heath. In buying his property two decades ago, the length of the lease was of minimal significance. Luckily, he became aware that he needed to take steps soon on a lease extension. Stanley was able to extend his lease at the eleventh hour last July. Stanley and the landlord eventually settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the figure would have escalated by at least £1,025.
Mr and Mrs. D Leroy moved into a first floor apartment in Thornton Heath in January 2002. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Identical flats in Thornton Heath with an extended lease were valued around £189,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed on 9 March 2079. Given that there were 53 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Thornton Heath property 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 related to 1 flat. The unexpired term was 69.46 years.