As the length of the unexpired term of a Tilehurst domestic lease decreases so does its value and therefore the value of your property. If the lease has, over 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Tilehurst will qualify for this right; nevertheless a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Tilehurst lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing protracted negotiations with the landlord of her studio apartment in Tilehurst, Georgia started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was concluded in October 2010. The landlord’s fees were negotiated to about 700 GBP.
Last Christmas we were phoned by Ms O Ward , who moved into a one bedroom apartment in Tilehurst in July 2007. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Identical flats in Tilehurst with a long lease were valued around £265,000. The average ground rent payable was £50 invoiced monthly. The lease concluded on 16 April 2099. Considering the 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Dr Jamie García owned a one bedroom apartment in Tilehurst in April 2001. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Tilehurst with an extended lease were in the region of £264,000. The average amount of ground rent was £60 collected yearly. The lease terminated in 2079. Taking into account 53 years left we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including costs.