The only way is down when it comes to Tiptree lease terms. Tiptree properties that have a residual term shorter than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Tiptree with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Tiptree,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tiptree valuers.
Two years ago Reuben, came precariously near to the 80-year mark with the lease on his garden apartment in Tiptree. In buying his home two decades ago, the length of the lease was of no bearing. Thankfully, he noticed he would soon be paying way over the odds for Extending the lease. Reuben extended the lease just in the nick of time last April. Reuben and the landlord who owned the flat above eventually settled on an amount of £6,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £950.
Dr T Miller owned a purpose-built apartment in Tiptree in May 1998. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Tiptree with a long lease were in the region of £166,400. The average ground rent payable was £60 billed every twelve months. The lease terminated in 2079. Given that there were 54 years outstanding we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.
Last month we were approach by Mr F Jones , who was assigned a lease of a garden flat in Tiptree in August 1999. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Tiptree with an extended lease were worth £232,800. The average amount of ground rent was £45 invoiced yearly. The lease terminated in 2090. Having 65 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.