Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Tilbury. Clearly, the length of lease left reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Tilbury have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due attention before delaying your Tilbury lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Tilbury leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her two bedroom apartment in Tilbury, Chloe initiated the lease extension process as the eighty year threshold was swiftly coming. The lease extension completed in October 2011. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr F Miller who, having took over the lease of a garden flat in Tilbury in September 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Tilbury with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished on 4 March 2097. Having 72 years left we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including fees.
In 2012 we were phoned by Mr L Harris who, having was assigned a lease of a first floor flat in Tilbury in July 2006. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable properties in Tilbury with an extended lease were valued around £233,200. The average amount of ground rent was £60 collected yearly. The lease lapsed in 2086. Given that there were 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.