Main reasons to start your Tiptree lease extension

Top reasons for lease extension now:

A Tiptree lease depreciates with the years remaining on the lease.

The nearer a domestic lease in Tiptree nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Tiptree will qualify for this right; however a conveyancer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Tiptree property with a lease extension has roughly the same value as a freehold

Leasehold properties in Tiptree with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may not loan monies with a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Tiptree lease extensions?

Regardless of whether you are a tenant or a landlord in Tiptree,the lease extension lawyers 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.

Tiptree Lease Extension Example Cases:

Liam, Tiptree, Essex,

Liam owned a high value flat in Tiptree being sold with a lease of a little over 72 years outstanding. Liam on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Liam to exercise his statutory right. Liam procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.

Tiptree case:

Dr C Gómez bought a one bedroom flat in Tiptree in August 2011. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable residencies in Tiptree with a long lease were worth £285,000. The average amount of ground rent was £55 collected per annum. The lease end date was on 24 May 2105. Having 79 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.

Tiptree case:

Last Autumn we were e-mailed by Ms A Cox , who moved into a basement flat in Tiptree in March 1999. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Comparative homes in Tiptree with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 collected yearly. The lease terminated in 2085. Considering the 59 years outstanding we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus costs.