With a long leasehold property in Tilehurst, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Tilehurst with a lease nearing 81 years left should seriously consider extending it sooner rather than later. Once a lease has below 80 years outstanding, under the relevant Act the landlord can calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Tilehurst with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The conveyancing solicitors that we work with undertake 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.
Felix owned a high value apartment in Tilehurst being marketed with a lease of a little over 59 years outstanding. Felix on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were e-mailed by Mr F García who, having acquired a newly refurbished flat in Tilehurst in March 2010. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Similar properties in Tilehurst with an extended lease were in the region of £225,400. The average amount of ground rent was £45 collected per annum. The lease expired on 15 July 2089. Taking into account 64 years outstanding we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.
In 2014 we were e-mailed by Mr and Mrs. G Simon who, having owned a purpose-built apartment in Tilehurst in June 2005. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Tilehurst with a long lease were in the region of £270,000. The average ground rent payable was £55 collected every twelve months. The lease finished in 2100. Having 75 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.