The closer a residential lease in Torpoint nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Torpoint will qualify for this right; nevertheless a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Torpoint valuers.
During the course of the last few months Sebastian, started to get near to the eighty-year mark with the lease on his two bedroom flat in Torpoint. Having bought his home two decades ago, the lease term was of minimal interest. Thankfully, he became aware that he needed to take action soon on a lease extension. Sebastian arranged for a lease extension just under the wire last September. Sebastian and the landlord subsequently settled on an amount of £6,000 . If the lease had gone below eighty years, the premium would have increased by at least £1,025.
In 2010 we were contacted by Dr V Carter who, having acquired a one bedroom apartment in Torpoint in March 1995. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Torpoint with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease finished in 2087. Given that there were 61 years unexpired we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of fees.
Last Spring we were phoned by Mrs B Evans , who acquired a ground floor apartment in Torpoint in May 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical homes in Torpoint with 100 year plus lease were worth £171,800. The average ground rent payable was £55 billed annually. The lease elapsed on 3 November 2076. Having 50 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus fees.