Tiptree leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Tiptree will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 will provide you increased control over the value of your Tiptree leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her ground floor apartment in Tiptree, Megan started the lease extension process as the 80 year threshold was swiftly coming. The transaction was finalised in November 2005. The landlord’s costs were kept to an absolute minimum.
Last Summer we were contacted by Dr J Fournier , who purchased a one bedroom apartment in Tiptree in April 2011. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Tiptree with a long lease were valued around £290,000. The mid-range amount of ground rent was £60 billed quarterly. The lease expired on 20 July 2106. Considering the 80 years remaining we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Last Spring we were approach by Mrs P Rodríguez , who was assigned a lease of a ground floor apartment in Tiptree in April 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar flats in Tiptree with an extended lease were worth £200,800. The average ground rent payable was £65 collected quarterly. The lease ended in 2086. Given that there were 60 years unexpired we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus legals.