Tilbury leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Tilbury will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Tilbury with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with undertake Tilbury 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 conveyancer we work with provide it.
Last year Thomas, came seriously close to the 80-year mark with the lease on his leasehold flat in Tilbury. Having purchased his property two decades ago, the lease term was of no concern. Fortunately, he noticed he needed to take steps soon on Extending the lease. Thomas arranged for a lease extension at the eleventh hour in May. Thomas and the freeholder via the management company in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,050.
Last April we were approach by Dr Kai Gunderson , who acquired a recently refurbished flat in Tilbury in August 2012. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical homes in Tilbury with an extended lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease termination date was on 23 February 2106. Considering the 80 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Last Winter we were phoned by Dr Jordan Ricardo , who completed a first floor flat in Tilbury in September 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Tilbury with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 billed monthly. The lease elapsed on 15 April 2095. Having 69 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.