Main reasons to commence your Torquay lease extension

Main reasons to start your Torquay lease extension today:

A Torquay lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Torquay, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Residents in Torquay with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years left, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.

Torquay property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Torquay with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may decide not to finance a property on a short lease

Lenders will not grant a mortgage on short residential leases. You most probably experience problems if you need to sell your flat in Torquay if the unexpired lease term is under the criteria set by most lenders. Different lenders have different requirements but generally they are looking for an unexpired term of at least seventy years.

Get in touch with one of our Torquay lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Torquay,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Torquay valuers.

Torquay Lease Extension Example Cases:

Sophie, Torquay, Devon,

Off the back of protracted discussions with the landlord of her ground floor apartment in Torquay, Sophie commenced the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in May 2006. The landlord’s costs were kept to an absolute minimum.

Torquay case:

In 2010 we were phoned by Dr Ibrahim Norbert who, having completed a garden flat in Torquay in August 2010. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Torquay with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed per annum. The lease elapsed on 22 June 2105. Considering the 79 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.

Torquay case:

Last Summer we were contacted by Mrs Caitlin Morris , who completed a garden apartment in Torquay in January 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical flats in Torquay with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected quarterly. The lease finished on 25 July 2085. Taking into account 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.