The value of Tilehurst leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is less than eighty years
Leasehold premises in Tilehurst with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Tilehurst leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Jack, started to get close to the 80-year mark with the lease on his garden apartment in Tilehurst. Having bought his property 18 years previously, the unexpired term was of minimal interest. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Jack was able to extend his lease just in the nick of time in September. Jack and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If he not met the deadline, the price would have gone up by a minimum £1,000.
Mr and Mrs. T Davies moved into a recently refurbished flat in Tilehurst in June 2012. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Tilehurst with a long lease were valued about £208,200. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed in 2086. Given that there were 61 years remaining we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including costs.
In 2011 we were contacted by Ms Paige Brown who, having owned a one bedroom flat in Tilehurst in September 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Tilehurst with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed per annum. The lease came to a finish in 2097. Having 72 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.