Tilehurst leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Tilehurst will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Tilehurst with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Tilehurst leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ethan, started to get near to the 80-year mark with the lease on his studio apartment in Tilehurst. In buying his flat 18 years ago, the lease term was of no bearing. Luckily, he realised he needed to take action soon on Extending the lease. Ethan was able to extend his lease at the eleventh hour last June. Ethan and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,025.
In 2013 we were contacted by Mr and Mrs. U Torres who, having acquired a purpose-built apartment in Tilehurst in February 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar flats in Tilehurst with an extended lease were valued about £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease ended in 2085. Having 59 years left we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.
Mrs Isabel Nguyen was assigned a lease of a one bedroom apartment in Tilehurst in October 2011. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical properties in Tilehurst with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished on 14 November 2096. Having 70 years left we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 plus fees.