Why you should commence your Torpoint lease extension

Top reasons for lease extension now:

Increase your lease and increase your Torpoint property value

With a residential leasehold premises in Torpoint, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years left. Residents in Torpoint with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has less than eighty years left, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.

Torpoint property with a lease extension is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to get nervous at around 75 years. This will be problematic once you wish to sell or remortgage your property as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your buyer must hold off for a couple of years before being able to exercise the right to a an extension to the lease.

What makes us experts in Torpoint lease extensions?

Irrespective of whether you are a tenant or a landlord in Torpoint,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 Torpoint valuers.

Torpoint Lease Extension Example Cases:

Riley, Torpoint, Cornwall,

Riley owned a 2 bedroom flat in Torpoint on the market with a lease of just over fifty eight years outstanding. Riley informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.

Torpoint case:

Last year we were contacted by Dr B Norbert , who owned a ground floor flat in Torpoint in April 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Torpoint with an extended lease were valued around £171,800. The average ground rent payable was £55 invoiced quarterly. The lease elapsed on 27 January 2076. Given that there were 50 years unexpired we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.

Torpoint case:

Mr and Mrs. B Rivera completed a purpose-built apartment in Torpoint in August 2008. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Torpoint with an extended lease were worth £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease expired on 18 April 2096. Considering the 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.