When it comes to domestic leasehold premises in Tilehurst, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Anyone in Tilehurst with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the current statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Tilehurst 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 lawyer we work with provide it.
Milo owned a studio flat in Tilehurst being marketed with a lease of just over 61 years unexpired. Milo informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Ms Emily Murphy completed a garden flat in Tilehurst in November 1996. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Identical properties in Tilehurst with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed yearly. The lease concluded in 2093. Considering the 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last Winter we were approach by Mr C Thomas , who owned a one bedroom apartment in Tilehurst in July 2010. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative flats in Tilehurst with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out on 28 April 2104. Given that there were 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.