Unfortunately that a Tiptree residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Tiptree property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most flat owners in Tiptree will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Tiptree with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| Santander | |
| Virgin |
Retaining our service will provide you enhanced control over the value of your Tiptree leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Lucas owned a 2 bedroom apartment in Tiptree on the market with a lease of just over sixty years unexpired. Lucas informally spoke with his landlord a well known Manchester-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 £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Christmas we were approach by Dr Ibrahim Flores , who purchased a basement apartment in Tiptree in June 2010. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Tiptree with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 billed per annum. The lease finished in 2089. Considering the 63 years left we calculated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of expenses.
In 2009 we were approached by Mr and Mrs. S Jackson who, having took over the lease of a ground floor apartment in Tiptree in January 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar premises in Tiptree with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 3 September 2100. Considering the 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.