With a residential leasehold property in Tilehurst, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Leasehold owners in Tilehurst with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has less than eighty years left, under the current statute the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Tilehurst can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Tilehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the freeholder of her one bedroom flat in Tilehurst, Millie initiated the lease extension process as the eighty year mark was fast coming. The legal work was finalised in January 2005. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. L Torres , who purchased a purpose-built apartment in Tilehurst in July 1998. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Tilehurst with a long lease were valued around £254,200. The mid-range ground rent payable was £60 collected monthly. The lease lapsed on 20 September 2077. Taking into account 51 years left we approximated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of expenses.
In 2010 we were called by Dr Paige Parker who, having owned a one bedroom apartment in Tilehurst in January 2000. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar premises in Tilehurst with a long lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out in 2088. Taking into account 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.