With a residential leasehold premises in Tiptree, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Tiptree with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant legislation the freeholder can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tiptree can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience 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 unsuccessful discussions with the freeholder of her ground floor apartment in Tiptree, Emily commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction was concluded in March 2005. The freeholder’s fees were kept to an absolute minimum.
Dr U Peterson moved into a one bedroom apartment in Tiptree in July 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative properties in Tiptree with a long lease were valued about £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended on 12 May 2097. Given that there were 73 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Last Spring we were contacted by Mr and Mrs. V Dupont , who was assigned a lease of a basement flat in Tiptree in April 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Tiptree with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 billed per annum. The lease finished in 2077. Taking into account 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of expenses.