Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Theale. Inevitably, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Theale have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful deliberation before putting off your Theale lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold properties in Theale with in excess of one hundred years left on the lease are sometimes referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Theale,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Theale valuers.
Off the back of lengthy discussions with the landlord of her ground floor flat in Theale, Leah initiated the lease extension process as the 80 year threshold was rapidly coming. The legal work was concluded in March 2015. The landlord’s costs were restricted to approximately 650 pounds.
Ms T Sánchez was assigned a lease of a one bedroom apartment in Theale in February 2004. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Theale with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 collected monthly. The lease terminated on 22 April 2082. Considering the 57 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Last Winter we were e-mailed by Mr Tommy Lefebvre , who acquired a ground floor flat in Theale in January 2004. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical homes in Theale with a long lease were valued about £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated on 28 July 2093. Considering the 68 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.