The value of Torquay leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Torquay,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Torquay valuers.
Freddie was the the leasehold owner of a conversion flat in Torquay being marketed with a lease of fraction over 61 years left. Freddie on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Dr M Petit took over the lease of a ground floor flat in Torquay in May 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Torquay with 100 year plus lease were valued about £220,400. The average ground rent payable was £45 collected monthly. The lease ran out in 2090. Given that there were 64 years remaining we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of expenses.
Mr and Mrs. W Kelly purchased a first floor flat in Torquay in August 1996. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Torquay with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2101. Taking into account 75 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.