The re-sale value of a leasehold property in Tintagel is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year mark. Statute entitles Tintagel qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Tintagel with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Tintagel leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oscar was the the leasehold proprietor of a conversion flat in Tintagel on the market with a lease of a little over 61 years remaining. Oscar informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Ms J Peterson took over the lease of a purpose-built flat in Tintagel in June 2002. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable residencies in Tintagel with a long lease were valued around £275,000. The average ground rent payable was £45 collected annually. The lease expired in 2094. Given that there were 69 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
Dr M Leroy was assigned a lease of a garden apartment in Tintagel in February 1997. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Identical premises in Tintagel with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed on 20 January 2083. Considering the 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.