On the balance of probabilities if you own a flat in Tiptree you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Tiptree leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
18 months ago Dylan, came seriously close to the eighty-year threshold with the lease on his one bedroom flat in Tiptree. In buying his property 19 years previously, the lease term was of little interest. Fortunately, he noticed he needed to take steps soon on Extending the lease. Dylan arranged for a lease extension just under the wire last July. Dylan and the landlord in the end agreed on an amount of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,100.
Ms V Moore owned a one bedroom apartment in Tiptree in August 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Tiptree with an extended lease were in the region of £173,800. The average amount of ground rent was £60 billed per annum. The lease lapsed on 21 April 2081. Having 55 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.
Mr Rory Gray moved into a newly refurbished apartment in Tiptree in July 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Tiptree with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 invoiced annually. The lease concluded in 2092. Taking into account 66 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.