With a domestic leasehold property in Theale, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Theale with a lease drawing near to 81 years left should seriously think of extending it sooner than later. Once a lease has under eighty years left, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Theale with more than 100 years left on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire 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. |
Lease extensions in Theale can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring 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 Christmas Daniel, came precariously near to the eighty-year mark with the lease on his ground floor apartment in Theale. In buying his flat 18 years previously, the length of the lease was of little interest. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Daniel arranged for a lease extension just ahead of time in July. Daniel and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If the lease had dipped below 80 years, the figure would have increased by at least £875.
Last Autumn we were phoned by Dr D Baker , who was assigned a lease of a ground floor apartment in Theale in October 2001. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Theale with a long lease were worth £210,600. The mid-range ground rent payable was £45 collected annually. The lease came to a finish in 2088. Considering the 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus expenses.
Last Autumn we were e-mailed by Mr and Mrs. V Parker , who purchased a garden apartment in Theale in January 1995. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparable residencies in Theale with an extended lease were worth £265,000. The average ground rent payable was £50 billed annually. The lease concluded in 2099. Having 73 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.