Calcot and Tilehurst leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher amount will be payable. Leasehold owners in Calcot and Tilehurst will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Calcot and Tilehurst,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Calcot and Tilehurst valuers.
Arthur was the the leasehold proprietor of a high value flat in Calcot and Tilehurst on the market with a lease of a little over fifty eight years left. Arthur informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were contacted by Mr and Mrs. J Evans who, having owned a garden flat in Calcot and Tilehurst in March 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Calcot and Tilehurst with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished on 25 April 2094. Given that there were 69 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
In 2013 we were called by Dr Isabella Sánchez who, having completed a newly refurbished apartment in Calcot and Tilehurst in January 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Calcot and Tilehurst with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2105. Given that there were 80 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.