Theale leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Theale enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Theale you should see if your lease has between seventy and ninety years remaining. There are good reasons why a Theale leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Theale with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Theale can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 a wealth of experience 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.
Edward owned a studio flat in Theale on the market with a lease of a few days over fifty eight years outstanding. Edward on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr C Watson bought a newly refurbished apartment in Theale in April 2005. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar homes in Theale with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected quarterly. The lease concluded on 13 November 2102. Considering the 77 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Ms S García acquired a studio flat in Theale in March 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Theale with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 collected monthly. The lease ran out in 2082. Considering the 57 years remaining we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.