Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Theale. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Theale have the right to extend the lease for a further 90 years in accordance with statute. Do give due deliberation before putting off your Theale lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
Leasehold properties in Theale with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with procure 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 conveyancer we work with provide it.
16 months ago Leon, started to get close to the 80-year mark with the lease on his garden flat in Theale. In buying his property two decades ago, the unexpired term was of little significance. Luckily, he recognised he needed to take action soon on Extending the lease. Leon was able to extend his lease just under the wire last August. Leon and the freeholder via the management company subsequently settled on a premium of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £900.
In 2009 we were e-mailed by Mrs G Parker who, having acquired a studio apartment in Theale in July 1997. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable properties in Theale with a long lease were valued around £166,400. The average amount of ground rent was £60 collected monthly. The lease expired on 8 May 2077. Having 54 years outstanding we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.
In 2010 we were contacted by Mrs Natalie Hall who, having completed a purpose-built flat in Theale in February 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Theale with a long lease were worth £227,800. The average amount of ground rent was £45 collected yearly. The lease elapsed in 2088. Having 65 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.