Torpoint leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Flat owners in Torpoint will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Torpoint with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Torpoint,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Torpoint valuers.
Last Christmas Blake, started to get near to the 80-year threshold with the lease on his garden flat in Torpoint. Having bought his flat two decades ago, the lease term was of little importance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Blake extended the lease just under the wire last January. Blake and the landlord eventually settled on an amount of £6,000 . If the lease had slid below eighty years, the figure would have become more costly by at least £875.
Dr F González owned a one bedroom flat in Torpoint in October 1997. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical flats in Torpoint with a long lease were valued about £240,600. The mid-range amount of ground rent was £60 billed quarterly. The lease ended on 2 June 2087. Having 62 years outstanding we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.
Mr Jonathan Lewis acquired a one bedroom flat in Torpoint in July 2003. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar premises in Torpoint with a long lease were worth £174,200. The average ground rent payable was £55 billed monthly. The lease ran out on 9 June 2076. Given that there were 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.