It’s an underpublicised certainty that a Tintern residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Tintern property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Tintern will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Tintern,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tintern valuers.
Last October Daniel, came critically near to the 80-year mark with the lease on his purpose- built apartment in Tintern. Having bought his home 18 years ago, the lease term was of no concern. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Daniel was able to extend his lease at the eleventh hour last May. Daniel and the landlord in the end agreed on sum of £5,000 . If the lease had slipped below 80 years, the premium would have increased by at least £1,150.
In 2010 we were contacted by Dr Kate Mercier who, having owned a garden apartment in Tintern in July 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Tintern with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed monthly. The lease terminated in 2105. Considering the 79 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
Last Autumn we were e-mailed by Mr and Mrs. M Ricardo , who completed a recently refurbished flat in Tintern in April 1995. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparative homes in Tintern with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed in 2085. Considering the 59 years left we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.