The market value of a leasehold property in Torpoint is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year threshold. Current legislation entitles Torpoint qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
|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.|
|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.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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.|
Lease extensions in Torpoint can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Torpoint lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the landlord of her purpose-built apartment in Torpoint, Chloe commenced the lease extension process as the eighty year mark was quickly coming. The legal work was concluded in September 2011. The freeholder’s fees were restricted to below 550 GBP.
Last Christmas we were called by Dr G Cooper , who owned a newly refurbished flat in Torpoint in April 2000. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative residencies in Torpoint with an extended lease were worth £196,400. The average ground rent payable was £55 billed per annum. The lease ended in 2075. Taking into account 54 years outstanding we calculated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 plus fees.
Last May we were approach by Mr and Mrs. B Garcia , who completed a ground floor apartment in Torpoint in February 2009. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable residencies in Torpoint with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 invoiced per annum. The lease lapsed on 1 November 2095. Given that there were 74 years unexpired we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.