Tiptree leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Tiptree tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tiptree you should see if your lease has between 70 and 90 years left. There are good reasons why a Tiptree leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society |
Lease extensions in Tiptree can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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.
After lengthy correspondence with the freeholder of her leasehold apartment in Tiptree, Imogen initiated the lease extension process just as the lease was nearing the all-important eighty-year mark. The legal work completed in September 2008. The landlord’s costs were negotiated to a tad over 700 GBP.
Dr C Martínez bought a one bedroom flat in Tiptree in September 1998. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative residencies in Tiptree with a long lease were worth £242,600. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish in 2093. Considering the 67 years outstanding we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.
In 2014 we were called by Ms B Martinez who, having owned a ground floor flat in Tiptree in March 2001. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable residencies in Tiptree with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease finished in 2104. Taking into account 78 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.