The market value of a leasehold property in Thornton Heath depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed well before the 80 year threshold. Statute enables Thornton Heath qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Thornton Heath,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Thornton Heath valuers.
Nathan was the the leasehold proprietor of a studio flat in Thornton Heath on the market with a lease of a little over 59 years left. Nathan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last year we were called by Mrs K Scott , who was assigned a lease of a first floor flat in Thornton Heath in January 2012. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable properties in Thornton Heath with a long lease were valued around £260,200. The average ground rent payable was £65 collected every twelve months. The lease ended in 2091. Considering the 66 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 not including professional charges.
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 number of years remaining on the existing lease(s) was 69.46 years.