With a residential leasehold premises in Theale, you are actually purchasing an entitlement to reside in a property for a set 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 long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Theale with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years outstanding, under the current Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Theale can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
Arthur was the the leasehold proprietor of a high value apartment in Theale being sold with a lease of just over 72 years outstanding. Arthur on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were approached by Dr J Kelly who, having completed a garden flat in Theale in January 2001. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Theale with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 collected yearly. The lease termination date was in 2081. Given that there were 55 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.
Mr and Mrs. R Davies completed a ground floor flat in Theale in September 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable homes in Theale with a long lease were valued about £235,200. The average ground rent payable was £45 collected quarterly. The lease concluded in 2092. Having 66 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.