The re-sale value of a leasehold property in Calcot and Tilehurst depends on how many years the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year mark. Current legislation entitles Calcot and Tilehurst qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Calcot and Tilehurst with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Calcot and Tilehurst,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Calcot and Tilehurst valuers.
Last year Jake, started to get near to the eighty-year mark with the lease on his garden apartment in Calcot and Tilehurst. Having bought his flat two decades ago, the lease term was of minimal relevance. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Jake was able to extend his lease at the eleventh hour in January. Jake and the freeholder via the management company eventually settled on the final figure of £5,500 . If the lease had gone to less than 80 years, the premium would have gone up by a minimum £1,000.
In 2011 we were called by Mr Andrew Martinez who, having moved into a basement flat in Calcot and Tilehurst in May 2012. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical homes in Calcot and Tilehurst with a long lease were valued about £256,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out in 2078. Taking into account 52 years remaining we estimated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 plus costs.
Dr Chantelle Roux acquired a purpose-built flat in Calcot and Tilehurst in June 2002. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical flats in Calcot and Tilehurst with an extended lease were worth £218,000. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish on 17 January 2089. Taking into account 63 years outstanding we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of expenses.