Torpoint leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Torpoint tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Torpoint you really ought to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Torpoint can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 procuring Torpoint lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her garden flat in Torpoint, Alicia started the lease extension process just as the lease was nearing the critical 80-year mark. The transaction was finalised in June 2005. The landlord’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Ms Kayleigh David , who completed a first floor apartment in Torpoint in July 2012. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative flats in Torpoint with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed quarterly. The lease elapsed in 2102. Taking into account 77 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last Winter we were phoned by Ms Laura Martinez , who took over the lease of a first floor apartment in Torpoint in May 2000. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparable homes in Torpoint with a long lease were valued around £260,200. The mid-range ground rent payable was £65 billed monthly. The lease concluded on 10 January 2091. Having 66 years unexpired we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 plus expenses.