Top reasons for Theale lease extension

Main reasons to commence your Theale lease extension today:

A Theale lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually 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 length of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Theale have the right to extend the lease for an additional ninety years under statute. Please give due attention before delaying your Theale lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease

Theale property with a lease extension is almost the same value as a freehold

Leasehold properties in Theale with more than 100 years left on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to issue a mortgage with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Theale?

The lawyers 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 conveyancer we work with provide it.

Theale Lease Extension Example Cases:

Henry, Theale, Berkshire

Last October Henry, started to get close to the eighty-year threshold with the lease on his first floor flat in Theale. Having bought his home 18 years ago, the length of the lease was of little bearing. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Henry was able to extend his lease at the eleventh hour last August. Henry and the freeholder subsequently agreed on sum of £5,000 . If the lease had dipped to less than eighty years, the amount would have increased by at least £900.

Theale case:

In 2012 we were e-mailed by Dr Ella Mercier who, having owned a basement apartment in Theale in March 1997. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable properties in Theale with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced monthly. The lease ran out on 26 October 2103. Having 77 years remaining we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.

Theale case:

In 2011 we were contacted by Ms T Baker who, having acquired a one bedroom apartment in Theale in November 2010. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Comparative flats in Theale with an extended lease were worth £183,600. The mid-range ground rent payable was £65 collected annually. The lease elapsed on 20 August 2083. Considering the 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.