Tiptree leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Tiptree enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Tiptree you would be well advised to investigate if your lease has between seventy and ninety years left. There are good reasons why a Tiptree leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Tiptree can be a difficult process. We recommend you get professional help from a lawyer 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 a wealth of experience procuring Tiptree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October James, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Tiptree. Having bought his property two decades ago, the length of the lease was of little importance. Fortunately, he recognised he needed to take action soon on Extending the lease. James arranged for a lease extension just ahead of time in September. James and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he not met the deadline, the figure would have increased by a minimum £875.
Last Autumn we were e-mailed by Dr Harry Walker , who purchased a first floor flat in Tiptree in February 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Tiptree with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease termination date was on 23 July 2095. Considering the 70 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2009 we were approached by Dr Sebastian Smith who, having was assigned a lease of a one bedroom flat in Tiptree in July 2002. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparable premises in Tiptree with an extended lease were valued about £246,800. The average ground rent payable was £60 invoiced quarterly. The lease expired in 2075. Given that there were 50 years left we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 not including expenses.