Torquay leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Torquay will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Torquay leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Benjamin, came precariously close to the eighty-year threshold with the lease on his purpose- built flat in Torquay. In buying his home twenty years ago, the unexpired term was of little interest. As luck would have it, he realised he needed to take steps soon on a lease extension. Benjamin arranged for a lease extension at the eleventh hour last June. Benjamin and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he had missed the deadline, the price would have escalated by at least £1,075.
In 2013 we were phoned by Dr Abbie Williams who, having acquired a ground floor flat in Torquay in October 1996. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparative premises in Torquay with a long lease were valued about £166,400. The average ground rent payable was £60 invoiced per annum. The lease end date was in 2079. Taking into account 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.
In 2011 we were called by Dr Austin Lefebvre who, having was assigned a lease of a purpose-built apartment in Torquay in July 2011. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable properties in Torquay with a long lease were valued about £227,800. The average ground rent payable was £45 billed quarterly. The lease came to a finish on 20 April 2090. Having 65 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.