The market value of a leasehold property in Torquay is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year cut off point. Leasehold Reform legislation enables Torquay qualifying lessees to obtain a lease extension of ninety years on top of 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 premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 obtain professional help from a conveyancing solicitor 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.
Subsequent to protracted negotiations with the landlord of her ground floor apartment in Torquay, Isabelle started the lease extension process as the 80 year threshold was fast advancing. The lease extension completed in October 2014. The landlord’s costs were negotiated to below 600 GBP.
In 2009 we were approached by Mrs Natasha Parker who, having bought a first floor apartment in Torquay in February 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Torquay with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 billed yearly. The lease ended on 26 June 2085. Having 59 years outstanding we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
In 2012 we were phoned by Dr John Parker who, having moved into a basement flat in Torquay in September 2002. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable flats in Torquay with a long lease were worth £250,000. The average amount of ground rent was £50 invoiced monthly. The lease finished on 9 May 2096. Given that there were 70 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.