The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Torpoint may extend the lease for an additional 90 years under legislation. Please think carefully before delaying your Torpoint lease extension. Putting off that expense now simply escalates the price you will eventually have to pay for a lease extension.
Leasehold residencies in Torpoint with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Torpoint can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 in-depth market knowledge dealing with Torpoint lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Gabriel, started to get close to the eighty-year threshold with the lease on his garden flat in Torpoint. Having bought his flat two decades ago, the unexpired term was of minimal bearing. by good luck, he became aware that he would soon be paying an inflated amount for Extending the lease. Gabriel extended the lease at the eleventh hour last September. Gabriel and the landlord ultimately settled on the final figure of £5,000 . If the lease had gone to less than eighty years, the premium would have gone up by a minimum £975.
In 2011 we were called by Mr Ibrahim Lewis who, having acquired a one bedroom flat in Torpoint in November 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Torpoint with a long lease were worth £300,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended in 2102. Having 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
In 2014 we were phoned by Mr G Bertrand who, having completed a ground floor flat in Torpoint in July 1996. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical residencies in Torpoint with a long lease were worth £257,800. The average amount of ground rent was £65 collected monthly. The lease elapsed on 4 January 2091. Considering the 65 years remaining we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.