It’s a harsh truth that a Torpoint residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Torpoint property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Torpoint will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Torpoint,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Torpoint valuers.
Dylan was the the leasehold proprietor of a conversion apartment in Torpoint being marketed with a lease of just over 59 years left. Dylan on an informal basis approached his landlord 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 on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last July we were approach by Mr and Mrs. Y Campbell , who completed a one bedroom flat in Torpoint in September 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Torpoint with an extended lease were in the region of £191,400. The average amount of ground rent was £55 collected every twelve months. The lease ended in 2080. Having 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of legals.
Last month we were e-mailed by Mr A Brooks , who completed a recently refurbished flat in Torpoint in November 1995. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable properties in Torpoint with a long lease were worth £295,000. The mid-range ground rent payable was £45 collected per annum. The lease expired on 12 January 2100. Taking into account 74 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.