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 your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Tiptree residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Tiptree you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages |
Lease extensions in Tiptree can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Tiptree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar owned a high value flat in Tiptree being marketed with a lease of just over 61 years left. Omar on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were contacted by Dr W Wood who, having moved into a ground floor apartment in Tiptree in February 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Tiptree with an extended lease were worth £193,400. The average ground rent payable was £65 billed quarterly. The lease ran out on 15 January 2085. Having 59 years left we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.
In 2009 we were e-mailed by Mrs Kate Campbell who, having owned a basement apartment in Tiptree in February 2008. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Similar homes in Tiptree with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected monthly. The lease finished on 26 March 2096. Given that there were 70 years remaining we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of legals.