With a domestic leasehold property in Tintern, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in Tintern with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years left, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Tintern 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 Tintern leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her garden apartment in Tintern, Megan started the lease extension process as the 80 year mark was rapidly approaching. The transaction completed in October 2005. The freeholder’s costs were restricted to under 550 pounds.
Last Winter we were phoned by Mr Jude Cox , who completed a one bedroom apartment in Tintern in January 2011. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Tintern with an extended lease were in the region of £186,000. The average amount of ground rent was £65 billed monthly. The lease elapsed in 2083. Taking into account 58 years unexpired we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus expenses.
Mr Archie Adams was assigned a lease of a recently refurbished flat in Tintern in November 2000. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Tintern with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed in 2094. Taking into account 69 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.