With a domestic leasehold premises in Tiptree, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years left. Residents in Tiptree with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has under 80 years left, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Tiptree with over one hundred years left 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Tiptree lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Tommy owned a 2 bedroom apartment in Tiptree being sold with a lease of just over 61 years outstanding. Tommy on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Autumn we were phoned by Ms U Baker , who acquired a ground floor apartment in Tiptree in June 2008. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative premises in Tiptree with a long lease were worth £254,200. The average amount of ground rent was £60 invoiced quarterly. The lease terminated in 2077. Having 51 years left we calculated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of legals.
Dr Lydia Moore purchased a one bedroom apartment in Tiptree in April 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Tiptree with an extended lease were valued around £210,600. The average amount of ground rent was £45 invoiced per annum. The lease concluded on 19 May 2088. Having 62 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 not including costs.