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.

Tilehurst leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Tilehurst will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.

Tilehurst property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lenders may not loan monies with a short lease

Many banks and building societies will be unwilling to lend on a lease with less than 70 years remaining - although this varies between mortgage companies. A buyer will undoubtedly find it difficult to obtain a mortgage and this could result in your Tilehurst property being difficult to sell or to obtain finance on.

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

Irrespective of whether you are a tenant or a freeholder in Tilehurst,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tilehurst valuers.

Tilehurst Lease Extension Case Summaries:

Omar, Tilehurst, Berkshire

Last October Omar, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Tilehurst. Having purchased his home 18 years previously, the length of the lease was of no concern. by good luck, he realised he would soon be paying an escalated premium for a lease extension. Omar was able to extend his lease at the eleventh hour last March. Omar and the freeholder eventually agreed on a premium of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,150.

Tilehurst case:

Dr Dylan Díaz moved into a ground floor flat in Tilehurst in September 1999. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Tilehurst with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated in 2092. Having 66 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.

Tilehurst case:

In 2014 we were e-mailed by Dr U Bennett who, having owned a one bedroom apartment in Tilehurst in February 1997. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Tilehurst with a long lease were valued around £275,000. The average amount of ground rent was £55 billed yearly. The lease termination date was on 17 October 2103. Taking into account 77 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.