Theale residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Theale with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Theale leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jasper, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Theale. Having purchased his home 19 years ago, the length of the lease was of no bearing. As luck would have it, he became aware that he needed to take action soon on a lease extension. Jasper arranged for a lease extension just in the nick of time in August. Jasper and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If the lease had slid to less than eighty years, the price would have escalated by a minimum £1,050.
In 2014 we were e-mailed by Ms Alexandra Rose who, having moved into a studio flat in Theale in January 2009. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative flats in Theale with a long lease were worth £208,200. The average ground rent payable was £65 billed annually. The lease terminated in 2087. Taking into account 61 years remaining we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.
Last Spring we were e-mailed by Dr Y Norbert , who moved into a purpose-built apartment in Theale in April 2007. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Similar properties in Theale with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced annually. The lease ended in 2098. Considering the 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.