The closer a residential lease in Torpoint gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Torpoint will qualify for this right; however a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Chelsea 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. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Torpoint lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Arthur owned a studio flat in Torpoint on the market with a lease of a little over sixty years outstanding. Arthur on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were approached by Dr Hunter González who, having purchased a studio flat in Torpoint in May 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Torpoint with 100 year plus lease were worth £275,000. The average ground rent payable was £45 collected annually. The lease ended in 2094. Taking into account 69 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.
Last year we were e-mailed by Mr and Mrs. I Parker , who moved into a studio flat in Torpoint in May 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Torpoint with a long lease were worth £216,000. The average ground rent payable was £60 invoiced per annum. The lease elapsed on 5 January 2083. Given that there were 58 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.