The nearer a domestic lease in Tilehurst nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Tilehurst will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Tilehurst with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Tilehurst leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the landlord of her one bedroom apartment in Tilehurst, Chelsea initiated the lease extension process as the 80 year threshold was fast approaching. The lease extension was finalised in September 2008. The landlord’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. E Turner who, having moved into a garden apartment in Tilehurst in November 2004. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in Tilehurst with a long lease were valued about £218,000. The average ground rent payable was £45 collected annually. The lease terminated on 13 May 2087. Considering the 63 years unexpired we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of costs.
Mr and Mrs. E Taylor took over the lease of a first floor flat in Tilehurst in September 2001. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Tilehurst with an extended lease were in the region of £270,000. The average ground rent payable was £55 billed quarterly. The lease ran out on 26 September 2098. Considering the 74 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.