Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Tintagel. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Tintagel have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful deliberation before delaying your Tintagel lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date 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 |
Regardless 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 experience and the close ties they enjoy with Tintagel valuers.
Jack was the the leasehold proprietor of a high value apartment in Tintagel being sold with a lease of just over 72 years remaining. Jack informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Christmas we were called by Mr and Mrs. F Reed , who moved into a recently refurbished flat in Tintagel in February 2010. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Tintagel with a long lease were worth £225,800. The average ground rent payable was £60 billed quarterly. The lease expired on 28 August 2086. Having 60 years outstanding we estimated the compensation to the landlord for the lease extension to be between £25,700 and £29,600 exclusive of legals.
In 2014 we were contacted by Mr I Sharif who, having was assigned a lease of a purpose-built apartment in Tintagel in October 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Tintagel with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 invoiced monthly. The lease ended in 2106. Taking into account 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.