Why you should start your Tintern lease extension

Top reasons for lease extension now:

A Tintern lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold property in Tintern, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Tintern with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has fewer than eighty years remaining, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold premises in Tintern with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not issue a mortgage with a short lease

Banks and Building Societies have set criteria when lending monies secured on leasehold property. Many will simply refrain from lending at all once an unexpired lease term falls beneath a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are wanting to remortgage your Tintern home.

What makes us experts in Tintern lease extensions?

Engaging our service gives you increased control over the value of your Tintern leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Tintern Lease Extension Example Cases:

Matthew, Tintern, Monmouthshire

In 2014 Matthew, came critically near to the 80-year mark with the lease on his garden flat in Tintern. In buying his property 19 years previously, the length of the lease was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Matthew was able to extend his lease just under the wire last March. Matthew and the freeholder subsequently settled on a premium of £6,000 . If the lease had slid lower than eighty years, the sum would have gone up by a minimum £850.

Tintern case:

Last Christmas we were called by Mr V White , who owned a basement flat in Tintern in January 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Tintern with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected annually. The lease concluded on 24 July 2086. Considering the 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of fees.

Tintern case:

Mr and Mrs. B King owned a one bedroom flat in Tintern in August 2011. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical properties in Tintern with a long lease were worth £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease termination date was on 25 March 2097. Considering the 71 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.