Chances are that where you own a flat in Tilehurst you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Virgin |
The conveyancers that we work with procure 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 conveyancer we work with provide it.
During the course of the last few months Toby, came seriously close to the eighty-year threshold with the lease on his studio apartment in Tilehurst. Having purchased his flat two decades ago, the unexpired term was of no concern. Thankfully, he realised he needed to take steps soon on a lease extension. Toby arranged for a lease extension at the eleventh hour last July. Toby and the landlord eventually settled on a premium of £5,000 . If he had missed the deadline, the premium would have become more exhorbitant by at least £1,025.
Last Winter we were approach by Mr and Mrs. A Richardson , who acquired a studio flat in Tilehurst in September 1996. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Tilehurst with an extended lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease expired on 7 April 2076. Given that there were 50 years unexpired we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including professional charges.
In 2013 we were contacted by Dr Phoebe Moreau who, having purchased a newly refurbished flat in Tilehurst in September 2012. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative homes in Tilehurst with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced yearly. The lease expired in 2087. Taking into account 61 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.