The re-sale value of a leasehold property in Torquay depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be addressed well before the eighty year threshold. Statute entitles Torquay qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Torquay with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 gives you increased control over the value of your Torquay leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a high value flat in Torquay on the market with a lease of a few days over 59 years outstanding. Kian informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Ms Victoria Phillips took over the lease of a first floor apartment in Torquay in August 2009. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative flats in Torquay with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected monthly. The lease lapsed on 5 September 2102. Having 76 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2011 we were called by Ms G Mason who, having owned a one bedroom apartment in Torquay in January 2012. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Torquay with 100 year plus lease were valued about £176,200. The average amount of ground rent was £65 invoiced monthly. The lease elapsed in 2082. Considering the 56 years outstanding we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of legals.