Unfortunately that a Torquay residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Torquay property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining falls below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Torquay will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Torquay,the lease extension lawyers 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.
Trailing unsuccessful negotiations with the freeholder of her ground floor flat in Torquay, Rebecca initiated the lease extension process as the 80 year threshold was rapidly nearing. The transaction was finalised in January 2005. The freeholder’s charges were kept to an absolute minimum.
Mr K Anderson owned a first floor flat in Torquay in September 2001. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Identical premises in Torquay with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out on 26 October 2085. Considering the 60 years left we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of costs.
In 2014 we were contacted by Dr Y Michel who, having took over the lease of a basement apartment in Torquay in September 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Torquay with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected per annum. The lease terminated in 2096. Taking into account 71 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.