The only way is down when it comes to Theale lease terms. Theale flats that have a residual term less than than 80 years will drop in market price even faster, and the cost of extending your lease will go up.
Leasehold residencies 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Theale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Hugo owned a studio apartment in Theale being sold with a lease of just over 59 years unexpired. Hugo on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2013 we were approached by Mrs Lily Harris who, having moved into a purpose-built apartment in Theale in September 1997. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative homes in Theale with an extended lease were valued about £270,000. The average ground rent payable was £55 collected per annum. The lease finished on 11 June 2100. Taking into account 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Mr and Mrs. I Edwards bought a first floor flat in Theale in July 2000. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparative residencies in Theale with an extended lease were worth £173,800. The mid-range amount of ground rent was £60 billed annually. The lease expired on 1 May 2080. Taking into account 55 years left we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus professional charges.