Chances are that where you own a flat in Torquay you actually own a long leasehold interest over your property
Leasehold properties in Torquay with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
The lawyers that we work with procure Torquay 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 lawyer we work with provide it.
Two years ago Seth, came dangerously near to the eighty-year threshold with the lease on his garden apartment in Torquay. Having purchased his property twenty years ago, the lease term was of no concern. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Seth extended the lease at the eleventh hour last April. Seth and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he not met the deadline, the figure would have become more exhorbitant by at least £1,025.
Last Summer we were approach by Mr and Mrs. T Peterson , who moved into a purpose-built flat in Torquay in September 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Torquay with an extended lease were valued about £218,000. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2089. Taking into account 63 years remaining we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus professional charges.
In 2010 we were called by Mr and Mrs. V Wilson who, having took over the lease of a garden apartment in Torquay in June 2008. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparable premises in Torquay with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended on 12 April 2100. Given that there were 74 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.