It’s a harsh truth that a Torpoint residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Torpoint property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Torpoint will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Torpoint,the lease extension solicitors 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 Torpoint valuers.
In recent months Sam, came seriously near to the 80-year mark with the lease on his studio apartment in Torpoint. Having bought his property 19 years ago, the length of the lease was of little interest. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Sam extended the lease at the eleventh hour in May. Sam and the freeholder via the managing agents eventually settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have escalated by at least £1,150.
Mr and Mrs. L Scott took over the lease of a first floor flat in Torpoint in May 2004. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative residencies in Torpoint with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 collected annually. The lease finished in 2105. Considering the 80 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Last Summer we were phoned by Mr and Mrs. Y Hill , who completed a garden flat in Torpoint in July 1999. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable premises in Torpoint with an extended lease were worth £275,000. The average ground rent payable was £45 invoiced yearly. The lease lapsed on 19 October 2094. Taking into account 69 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.