Tiptree leases on domestic deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Tiptree will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Sam was the the leasehold owner of a studio flat in Tiptree being marketed with a lease of a little over 61 years unexpired. Sam informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2011 we were e-mailed by Dr S Rose who, having acquired a studio apartment in Tiptree in August 2007. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative properties in Tiptree with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected annually. The lease concluded in 2102. Having 76 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Last month we were e-mailed by Dr N Gray , who moved into a basement apartment in Tiptree in October 2000. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical residencies in Tiptree with an extended lease were valued around £176,200. The average amount of ground rent was £65 billed quarterly. The lease came to a finish on 14 April 2082. Considering the 56 years outstanding we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus fees.