When it comes to long leasehold property in Torpoint, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned 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 less than 80 years left. Anyone in Torpoint with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Torpoint with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Torpoint leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful discussions with the freeholder of her one bedroom apartment in Torpoint, Sophie commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was finalised in March 2008. The landlord’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mrs Caitlin Norbert who, having bought a one bedroom apartment in Torpoint in October 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative homes in Torpoint with a long lease were in the region of £233,200. The average ground rent payable was £60 invoiced yearly. The lease ran out in 2086. Taking into account 61 years unexpired we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus fees.
Last month we were approach by Ms R Jackson , who bought a studio apartment in Torpoint in September 1997. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Torpoint with 100 year plus lease were in the region of £166,800. The average ground rent payable was £50 billed every twelve months. The lease elapsed on 14 October 2075. Having 50 years unexpired we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.