Calcot and Tilehurst leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Calcot and Tilehurst will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Calcot and Tilehurst can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Calcot and Tilehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Owen, started to get near to the 80-year threshold with the lease on his ground floor apartment in Calcot and Tilehurst. In buying his flat two decades ago, the lease term was of little significance. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Owen extended the lease at the eleventh hour last September. Owen and the landlord in the end agreed on a premium of £5,000 . If he not met the deadline, the premium would have increased by a minimum £1,025.
Last month we were approach by Mr and Mrs. D Wilson , who bought a one bedroom flat in Calcot and Tilehurst in March 2006. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative premises in Calcot and Tilehurst with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease concluded in 2075. Considering the 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of legals.
Last month we were phoned by Mrs Melissa James , who purchased a one bedroom flat in Calcot and Tilehurst in November 2010. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable residencies in Calcot and Tilehurst with an extended lease were in the region of £203,200. The average amount of ground rent was £65 invoiced per annum. The lease terminated on 28 August 2086. Having 61 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.