It’s a harsh truth that a Torpoint residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Torpoint property market.Where your lease has approximately 90 years left, you need to 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 dips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Torpoint will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord 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.
Following lengthy correspondence with the landlord of her two bedroom apartment in Torpoint, Rosie started the lease extension process as the 80 year mark was swiftly approaching. The transaction was concluded in September 2015. The freeholder’s fees were negotiated to approximately 450 pounds.
Last year we were approach by Mr Aaron Flores , who purchased a one bedroom apartment in Torpoint in August 2011. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable properties in Torpoint with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected quarterly. The lease finished on 15 August 2091. Having 65 years outstanding we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.
Last Christmas we were contacted by Mr and Mrs. S López , who took over the lease of a first floor apartment in Torpoint in April 2005. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Torpoint with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2080. Given that there were 54 years as a residual term we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus expenses.