The nearer a domestic lease in Tilehurst gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Tilehurst will qualify for this right; nevertheless a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Tilehurst,the lease extension solicitors that we work with will always be prepared 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.
Nathaniel was the the leasehold owner of a high value apartment in Tilehurst on the market with a lease of a little over fifty eight years left. Nathaniel on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Dr F Jackson owned a one bedroom apartment in Tilehurst in March 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Tilehurst with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 billed monthly. The lease finished in 2078. Taking into account 52 years left we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus legals.
Last Winter we were e-mailed by Dr Oscar Sharif , who completed a one bedroom flat in Tilehurst in July 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Tilehurst with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 collected every twelve months. The lease ran out in 2089. Taking into account 63 years remaining we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus fees.