The market value of a leasehold property in Theale is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed in advance of the 80 year mark. Current legislation enables Theale qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Theale with more than one hundred years remaining 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Theale can be a difficult process. We recommend you procure guidance from a conveyancer 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 Summer Finn, started to get near to the eighty-year threshold with the lease on his studio flat in Theale. In buying his property 19 years ago, the length of the lease was of little importance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Finn extended the lease at the eleventh hour in May. Finn and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had gone to less than 80 years, the price would have escalated by a minimum £900.
Last Summer we were phoned by Mr and Mrs. B Thomas , who bought a first floor apartment in Theale in April 2003. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparable homes in Theale with 100 year plus lease were worth £280,000. The average ground rent payable was £55 billed per annum. The lease expired in 2102. Considering the 78 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Last month we were e-mailed by Mr and Mrs. O Pérez , who completed a first floor apartment in Theale in January 2001. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable residencies in Theale with 100 year plus lease were in the region of £191,000. The average ground rent payable was £65 billed per annum. The lease elapsed on 18 February 2082. Considering the 58 years outstanding we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus fees.