The value of Tintagel leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Tintagel,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tintagel valuers.
Rory owned a high value flat in Tintagel on the market with a lease of a few days over sixty years remaining. Rory informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Mr and Mrs. J Morel bought a recently refurbished apartment in Tintagel in July 2004. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparative premises in Tintagel with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed in 2084. Taking into account 58 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
In 2013 we were approached by Dr P Michel who, having completed a first floor apartment in Tintagel in October 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative homes in Tintagel with an extended lease were in the region of £200,000. The average ground rent payable was £50 collected monthly. The lease concluded on 22 October 2104. Having 78 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.