When it comes to residential leasehold property in Torpoint, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years left. Residents in Torpoint with a lease nearing 81 years left should seriously consider extending it sooner than later. When a lease has fewer than eighty years remaining, under the current Act the freeholder can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Torpoint with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Torpoint can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Kian owned a 2 bedroom apartment in Torpoint on the market with a lease of a little over 72 years remaining. Kian informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and secured an acceptable resolution without going to tribunal and sell the property.
Last Christmas we were contacted by Mr and Mrs. K García , who purchased a purpose-built apartment in Torpoint in February 2011. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar residencies in Torpoint with an extended lease were in the region of £267,600. The average amount of ground rent was £65 collected annually. The lease came to a finish on 9 November 2092. Considering the 67 years outstanding we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of expenses.
Mr and Mrs. S Nelson owned a studio apartment in Torpoint in May 1997. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar premises in Torpoint with a long lease were valued around £206,200. The average ground rent payable was £55 invoiced monthly. The lease terminated on 3 February 2081. Taking into account 56 years remaining we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.