Top reasons for Tiptree lease extension

Main reasons to start your Tiptree lease extension today:

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

Tiptree leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Tiptree tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tiptree you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Tiptree flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay

Tiptree property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold property. Many will simply refuse lend at all once an unexpired lease term falls below a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Tiptree home.

What makes us experts in Tiptree lease extensions?

Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Tiptree valuers.

Tiptree Lease Extension Case Studies:

Luca, Tiptree, Essex,

Luca owned a high value flat in Tiptree on the market with a lease of just over sixty years outstanding. Luca informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Tiptree case:

Mrs Millie Young purchased a basement flat in Tiptree in June 2011. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical flats in Tiptree with an extended lease were worth £270,000. The average amount of ground rent was £55 collected monthly. The lease expired in 2101. Given that there were 75 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.

Tiptree case:

Last Christmas we were contacted by Mr and Mrs. L Rogers , who was assigned a lease of a studio apartment in Tiptree in August 2011. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Tiptree with a long lease were valued around £173,800. The mid-range amount of ground rent was £60 invoiced annually. The lease finished on 16 August 2081. Considering the 55 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.