With a domestic leasehold property in Tilbury, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Residents in Tilbury with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years outstanding, under the relevant legislation the freeholder can calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Tilbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tilbury valuers.
Subsequent to unsuccessful negotiations with the freeholder of her ground floor flat in Tilbury, Lily started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension completed in September 2010. The landlord’s charges were restricted to approximately 600 pounds.
Last year we were e-mailed by Dr O Torres , who was assigned a lease of a one bedroom flat in Tilbury in October 1996. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Tilbury with a long lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired on 27 March 2090. Taking into account 65 years remaining we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus expenses.
Mr Omar Adams completed a one bedroom apartment in Tilbury in January 2002. The question was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Identical properties in Tilbury with an extended lease were worth £196,400. The average amount of ground rent was £55 invoiced annually. The lease elapsed on 21 September 2079. Taking into account 54 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £35,200 and £40,600 exclusive of legals.