The market value of a leasehold property in Tiptree depends on how long the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year threshold. Current legislation entitles Tiptree qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Tiptree with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Tiptree leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the freeholder of her basement apartment in Tiptree, Natalie initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The transaction completed in July 2011. The landlord’s costs were negotiated to slightly above 650 GBP.
In 2014 we were phoned by Ms C Khan who, having was assigned a lease of a newly refurbished apartment in Tiptree in April 2011. The question was if we could estimate the price could be for a ninety year lease extension. Comparative premises in Tiptree with a long lease were in the region of £173,800. The average amount of ground rent was £65 invoiced monthly. The lease lapsed in 2080. Considering the 55 years left we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.
Last year we were contacted by Ms G Ricardo , who took over the lease of a first floor flat in Tiptree in January 2006. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Tiptree with an extended lease were valued around £235,200. The average amount of ground rent was £45 invoiced annually. The lease finished in 2091. Having 66 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.