Tintagel leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Tintagel residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Tintagel you really ought to check if your lease has between seventy and ninety years remaining. There are good reasons why a Tintagel flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tintagel valuers.
Off the back of protracted correspondence with the landlord of her leasehold flat in Tintagel, Jordan initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction completed in February 2010. The freeholder’s charges were negotiated to a tad over 650 pounds.
Last Spring we were approach by Dr Harriet White , who acquired a recently refurbished apartment in Tintagel in September 2008. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Tintagel with 100 year plus lease were in the region of £218,400. The average amount of ground rent was £60 billed monthly. The lease concluded on 21 October 2085. Given that there were 59 years outstanding we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.
Last May we were contacted by Ms J Taylor , who acquired a recently refurbished apartment in Tintagel in February 2012. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Tintagel with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease concluded in 2105. Having 79 years left we approximated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 plus fees.