Tilehurst leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Tilehurst enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Tilehurst you must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Tilehurst can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Tilehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her leasehold flat in Tilehurst, Chantelle commenced the lease extension process as the 80 year deadline was swiftly approaching. The legal work was concluded in September 2015. The freeholder’s fees were negotiated to below 450 pounds.
Mrs L Thomas moved into a recently refurbished flat in Tilehurst in June 2002. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar premises in Tilehurst with a long lease were worth £255,000. The average ground rent payable was £50 collected every twelve months. The lease ran out on 12 June 2096. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 not including costs.
Last January we were called by Dr O Mercier , who owned a one bedroom flat in Tilehurst in May 2002. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable homes in Tilehurst with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 billed per annum. The lease lapsed in 2076. Considering the 50 years remaining we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of fees.