Why you should commence your Tilehurst lease extension

Main reasons to start your Tilehurst lease extension today:

A Tilehurst leasehold property depreciates with the years remaining on the lease.

As the the remaining lease term of a Tilehurst residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than one hundred years remaining then this decrease may be fractional however there will become a stage 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 increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Tilehurst will qualify for this right; however a conveyancing solicitor should 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.

Tilehurst property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.

Mortgage lenders may not issue a mortgage on a short lease

Mortgage companies are making their criteria more stringent and many now expect flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Given that a number of flats in Tilehurst were created in the fifties, sixties and seventies as a result many now require lease extensions if they wish to get a mortgage.

Get in touch with one of our Tilehurst lease extension solicitors or enfranchisement solicitors

The lawyers 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.

Tilehurst Lease Extension Case Summaries:

Ben, Tilehurst, Berkshire

In 2014 Ben, started to get near to the 80-year threshold with the lease on his garden flat in Tilehurst. In buying his flat two decades ago, the lease term was of no relevance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Ben arranged for a lease extension just in the nick of time in May. Ben and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If the lease had fallen to less than 80 years, the sum would have escalated by at least £1,025.

Tilehurst case:

Mr and Mrs. M Collins took over the lease of a one bedroom flat in Tilehurst in November 1999. The question was if we could approximate the price could be to extend the lease by ninety years. Comparable premises in Tilehurst with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced annually. The lease lapsed on 19 August 2088. Given that there were 62 years outstanding we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.

Tilehurst case:

Dr Ryan Wood moved into a ground floor apartment in Tilehurst in October 2010. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable properties in Tilehurst with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed on 5 November 2099. Having 73 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.