The value of Torquay leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is below than eighty years
Leasehold premises in Torquay with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Torquay can be a difficult process. We recommend you secure professional help 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 Torquay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Blake, started to get close to the 80-year mark with the lease on his purpose- built apartment in Torquay. In buying his flat two decades ago, the lease term was of minimal significance. Fortunately, he realised he needed to take steps soon on a lease extension. Blake was able to extend his lease just ahead of time in June. Blake and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If the lease had gone to less than eighty years, the price would have become more costly by a minimum £875.
Last Autumn we were contacted by Dr I Davies , who acquired a studio apartment in Torquay in June 2012. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative premises in Torquay with an extended lease were valued around £183,600. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish on 2 June 2083. Considering the 57 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
Last Christmas we were phoned by Mr and Mrs. Y Girard , who was assigned a lease of a first floor flat in Torquay in March 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Torquay with a long lease were valued around £245,000. The average ground rent payable was £45 billed per annum. The lease finished in 2094. Considering the 68 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.