Tiptree leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Tiptree enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Tiptree you really ought to check if your lease has between 70 and 90 years left. There are compelling reasons why a Tiptree leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Tiptree with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | 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. |
| Yorkshire Building Society | 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. |
Using our service gives you enhanced control over the value of your Tiptree leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her first floor apartment in Tiptree, Daisy commenced the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in June 2011. The landlord’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mr John Vincent who, having acquired a garden flat in Tiptree in February 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Tiptree with an extended lease were valued about £254,200. The mid-range amount of ground rent was £60 collected per annum. The lease expired on 5 April 2076. Given that there were 51 years outstanding we estimated the premium to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of legals.
In 2011 we were phoned by Dr H Clark who, having took over the lease of a one bedroom apartment in Tiptree in January 2000. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical homes in Tiptree with 100 year plus lease were valued about £215,600. The average ground rent payable was £45 invoiced monthly. The lease ran out in 2087. Considering the 62 years remaining we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.