Tilehurst leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Tilehurst will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Tilehurst with over 100 years left on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Tilehurst,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tilehurst valuers.
George was the the leasehold proprietor of a studio apartment in Tilehurst being marketed with a lease of just over sixty years left. George on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mr and Mrs. A Williams acquired a ground floor flat in Tilehurst in July 2000. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Tilehurst with a long lease were worth £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended on 22 May 2104. Taking into account 78 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2014 we were phoned by Ms Naomi Stewart who, having purchased a garden apartment in Tilehurst in April 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Tilehurst with a long lease were valued around £191,000. The average amount of ground rent was £65 invoiced yearly. The lease end date was on 22 October 2084. Considering the 58 years left we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of legals.