Tintagel leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Tintagel residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Tintagel you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Tintagel leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Tintagel with more than 100 years left on the lease are often 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 buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Using our service will provide you enhanced 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 decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a studio apartment in Tintagel on the market with a lease of a few days over 72 years left. Jake on an informal basis contacted his landlord 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 new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2010 we were phoned by Mr and Mrs. V Ward who, having took over the lease of a garden apartment in Tintagel in October 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical residencies in Tintagel with 100 year plus lease were in the region of £248,000. The average ground rent payable was £65 invoiced yearly. The lease expired in 2087. Considering the 63 years as a residual term we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including costs.
In 2012 we were phoned by Mrs A Collins who, having took over the lease of a basement flat in Tintagel in July 2000. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical residencies in Tintagel with an extended lease were worth £181,600. The average ground rent payable was £55 invoiced yearly. The lease came to a finish on 8 March 2076. Given that there were 52 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.