When it comes to residential leasehold property in Tilehurst, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years left. Leasehold owners in Tilehurst with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has less than eighty years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent 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 | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Freddie owned a 2 bedroom apartment in Tilehurst being marketed with a lease of just over 61 years outstanding. Freddie on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mrs Tia González who, having bought a one bedroom flat in Tilehurst in May 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical premises in Tilehurst with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ended on 18 July 2105. Given that there were 79 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
Last Spring we were contacted by Mr and Mrs. J Bennett , who purchased a one bedroom flat in Tilehurst in June 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar residencies in Tilehurst with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease terminated on 19 July 2085. Taking into account 59 years left we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.