When it comes to domestic leasehold premises in Theale, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Theale with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has less than eighty years outstanding, under the current legislation the landlord is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Theale with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Theale leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Oscar, started to get near to the eighty-year mark with the lease on his purpose- built flat in Theale. Having bought his flat two decades ago, the lease term was of no bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Oscar arranged for a lease extension at the eleventh hour in September. Oscar and the freeholder via the managing agents ultimately settled on sum of £6,000 . If the lease had dropped lower than 80 years, the sum would have increased by a minimum £1,075.
Ms N Collins bought a purpose-built apartment in Theale in April 2012. The dilemma 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 in the region of £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed in 2085. Considering the 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including professional charges.
Last Winter we were phoned by Mr E Edwards , who bought a one bedroom flat in Theale in August 2003. We are asked if we could estimate the price could be for a 90 year lease extension. Identical properties in Theale with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed monthly. The lease expired in 2096. Having 71 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.