The market value of a leasehold property in Tilehurst is impacted by how long the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year threshold. Current legislation enables Tilehurst qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
Regardless of whether you are a tenant or a landlord in Tilehurst,the lease extension solicitors that we work with will always be willing 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.
Subsequent to protracted negotiations with the freeholder of her one bedroom apartment in Tilehurst, Alexandra initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in June 2006. The landlord’s costs were restricted to less than 650 GBP.
In 2009 we were contacted by Dr S Leroy who, having acquired a ground floor flat in Tilehurst in June 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Tilehurst with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out in 2097. Given that there were 72 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2011 we were contacted by Mr and Mrs. R Rodríguez who, having bought a purpose-built flat in Tilehurst in November 1997. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in Tilehurst with a long lease were worth £261,600. The mid-range ground rent payable was £60 invoiced annually. The lease ended on 23 June 2077. Having 52 years remaining we approximated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus legals.