For anyone whose Tintagel property is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold premises in Tintagel with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Tintagel,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tintagel valuers.
Kai owned a 2 bedroom flat in Tintagel being marketed with a lease of fraction over 72 years unexpired. Kai informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2010 we were approached by Dr P Sánchez who, having completed a purpose-built flat in Tintagel in April 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Tintagel with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated in 2104. Considering the 78 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
In 2013 we were e-mailed by Mrs Shannon Vincent who, having was assigned a lease of a studio flat in Tintagel in November 1996. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative homes in Tintagel with an extended lease were valued about £267,600. The average amount of ground rent was £65 invoiced yearly. The lease ended on 10 June 2093. Taking into account 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of legals.