On the balance of probabilities if you own a flat in Tintagel you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Tintagel can be a difficult process. We recommend you get 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 a wealth of experience dealing with Tintagel lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a 2 bedroom flat in Tintagel on the market with a lease of just over 61 years outstanding. Alexander informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Dr M Fournier bought a one bedroom apartment in Tintagel in November 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Tintagel with a long lease were valued about £191,400. The average ground rent payable was £55 billed annually. The lease elapsed in 2080. Taking into account 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.
Dr Jamie Young owned a one bedroom flat in Tintagel in October 2000. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Tintagel with a long lease were worth £295,000. The mid-range amount of ground rent was £45 collected annually. The lease ended in 2100. Considering the 74 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.