Tintagel leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Tintagel will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Tintagel with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with handle Tintagel lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Rory owned a high value apartment in Tintagel on the market with a lease of fraction over sixty years outstanding. Rory informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2014 we were phoned by Mr and Mrs. P David who, having was assigned a lease of a one bedroom apartment in Tintagel in October 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Tintagel with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed on 23 September 2096. Having 70 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Dr Tommy White owned a studio apartment in Tintagel in September 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Tintagel with 100 year plus lease were worth £218,400. The mid-range amount of ground rent was £60 collected yearly. The lease ran out on 16 June 2085. Taking into account 59 years outstanding we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including professional charges.