When it comes to domestic leasehold property in Tintern, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking 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 remaining. Anyone in Tintern with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| 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. |
Lease extensions in Tintern can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Tintern lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago David, started to get near to the 80-year mark with the lease on his studio flat in Tintern. In buying his home 18 years previously, the unexpired term was of minimal interest. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. David was able to extend his lease just in the nick of time in March. David and the landlord subsequently agreed on a premium of £5,000 . If the lease had slid below eighty years, the amount would have gone up by at least £900.
In 2011 we were phoned by Mr and Mrs. S Roux who, having bought a studio flat in Tintern in August 2012. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Tintern with a long lease were in the region of £227,800. The average ground rent payable was £45 collected monthly. The lease finished on 6 October 2091. Taking into account 65 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Last Spring we were phoned by Mr and Mrs. D Khan , who acquired a recently refurbished flat in Tintern in May 2004. The question was if we could estimate the price would be to extend the lease by ninety years. Similar premises in Tintern with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished in 2102. Considering the 76 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.