Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Torpoint. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Torpoint have the legal entitlement to extend the lease for a further ninety years under statute. Please give due attention before putting off your Torpoint lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold premises in Torpoint with in excess of 100 years left 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Torpoint can be a difficult process. We recommend you procure professional help from a conveyancer 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 in-depth market knowledge procuring Torpoint lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel owned a studio flat in Torpoint on the market with a lease of just over 59 years remaining. Samuel informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Ms B Torres owned a purpose-built apartment in Torpoint in September 2003. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Torpoint with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out in 2088. Given that there were 63 years as a residual term we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including legals.
Mr and Mrs. G Wilson purchased a studio flat in Torpoint in April 2010. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Similar residencies in Torpoint with a long lease were valued about £181,600. The average ground rent payable was £55 collected yearly. The lease termination date was in 2077. Having 52 years outstanding we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.