The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Theale may extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Theale lease extension. Putting off that expense today simply escalates the price you will eventually have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Theale can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
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 dealing with Theale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Jonathan, came dangerously near to the 80-year mark with the lease on his studio flat in Theale. In buying his flat two decades ago, the length of the lease was of little bearing. by good luck, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Jonathan extended the lease just under the wire in September. Jonathan and the landlord subsequently agreed on a premium of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,000.
Last Spring we were approach by Mr Callum Adams , who purchased a purpose-built flat in Theale in February 2008. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical properties in Theale with a long lease were valued around £290,000. The average ground rent payable was £60 invoiced monthly. The lease lapsed on 20 October 2104. Having 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.
Mr and Mrs. U Gunderson owned a one bedroom apartment in Theale in June 1996. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar residencies in Theale with a long lease were worth £200,800. The average ground rent payable was £65 billed every twelve months. The lease ended on 24 March 2084. Given that there were 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including expenses.