Chances are that where you own a flat in Calcot and Tilehurst you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Calcot and 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.
Off the back of protracted discussions with the landlord of her basement flat in Calcot and Tilehurst, Abbie initiated the lease extension process as the 80 year mark was fast coming. The lease extension was finalised in January 2014. The landlord’s costs were restricted to about 650 GBP.
In 2009 we were e-mailed by Mr and Mrs. B Martinez who, having bought a purpose-built flat in Calcot and Tilehurst in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Calcot and Tilehurst with 100 year plus lease were valued around £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded on 14 October 2101. Considering the 76 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Winter we were phoned by Dr Y Bailey , who purchased a one bedroom apartment in Calcot and Tilehurst in August 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Calcot and Tilehurst with an extended lease were valued around £176,200. The average amount of ground rent was £65 invoiced annually. The lease end date was on 2 September 2081. Taking into account 56 years remaining we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of legals.