Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Tintagel. Clearly, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Tintagel have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful consideration before putting off your Tintagel lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold premises in Tintagel with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tintagel valuers.
After lengthy discussions with the landlord of her leasehold apartment in Tintagel, Sarah commenced the lease extension process as the eighty year threshold was quickly approaching. The lease extension was finalised in February 2010. The landlord’s charges were negotiated to slightly above 550 GBP.
Last Autumn we were contacted by Mr and Mrs. S Davies , who bought a first floor flat in Tintagel in August 2004. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Identical homes in Tintagel with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expired on 9 April 2098. Considering the 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2009 we were approached by Mrs G Rogers who, having was assigned a lease of a purpose-built apartment in Tintagel in February 2002. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar flats in Tintagel with a long lease were worth £235,600. The mid-range ground rent payable was £60 billed yearly. The lease expiry date was on 24 April 2087. Having 62 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus expenses.