With a domestic leasehold property in Theale, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Residents in Theale with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Theale with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Theale leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a conversion apartment in Theale on the market with a lease of a few days over 61 years outstanding. Mason informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2012 we were approached by Mrs N Cox who, having acquired a basement apartment in Theale in September 2007. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical premises in Theale with 100 year plus lease were worth £208,200. The average ground rent payable was £65 billed per annum. The lease expired on 6 September 2086. Taking into account 61 years unexpired we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
In 2012 we were phoned by Dr Y Garcia who, having acquired a recently refurbished apartment in Theale in February 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Theale with a long lease were worth £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2097. Having 72 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.