The re-sale value of a leasehold property in Torquay depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded ahead of the 80 year cut off point. Current legislation entitles Torquay qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Torquay with more than 100 years remaining 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Torquay can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 dealing with Torquay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the freeholder of her purpose-built apartment in Torquay, Courtney initiated the lease extension process as the 80 year threshold was swiftly approaching. The legal work was concluded in November 2007. The freeholder’s charges were negotiated to less than 650 GBP.
In 2009 we were e-mailed by Ms P James who, having completed a ground floor flat in Torquay in June 2008. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable homes in Torquay with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced per annum. The lease finished on 27 February 2095. Taking into account 70 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Dr Isaac Roberts purchased a ground floor flat in Torquay in March 1997. The question was if we could estimate the price would be to prolong the lease by 90 years. Identical residencies in Torquay with 100 year plus lease were worth £246,800. The average ground rent payable was £60 invoiced every twelve months. The lease expiry date was on 13 July 2075. Considering the 50 years remaining we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.