The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Torquay have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Do give careful consideration before delaying your Torquay lease extension. Postponing that expense now simply escalates the price you will ultimately have to pay for a lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
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 experience and the close ties they enjoy with Torquay valuers.
Eli was the the leasehold proprietor of a studio flat in Torquay on the market with a lease of a few days over 61 years outstanding. Eli on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Winter we were approach by Mr and Mrs. D Lefebvre , who completed a basement flat in Torquay in March 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Torquay with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed monthly. The lease expired on 27 May 2082. Given that there were 56 years remaining we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus costs.
Mr Noah Petit owned a first floor flat in Torquay in November 2004. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical flats in Torquay with an extended lease were valued around £237,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded in 2093. Taking into account 67 years outstanding we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus fees.