The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Torpoint can extend the lease for a further ninety years under statute. Please think carefully before delaying your Torpoint lease extension. Postponing that expense now simply increases the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Torpoint,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Torpoint valuers.
Last Winter Aaron, came critically close to the eighty-year threshold with the lease on his one bedroom flat in Torpoint. In buying his home two decades ago, the unexpired term was of minimal bearing. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Aaron extended the lease at the eleventh hour last May. Aaron and the landlord subsequently agreed on the final figure of £5,500 . If the lease had dropped below 80 years, the sum would have become more costly by a minimum £900.
In 2014 we were approached by Mr and Mrs. I Patel who, having was assigned a lease of a ground floor apartment in Torpoint in January 2007. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable homes in Torpoint with an extended lease were in the region of £240,600. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed on 5 September 2088. Given that there were 62 years outstanding we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.
Last September we were e-mailed by Mrs N Cooper , who was assigned a lease of a newly refurbished apartment in Torpoint in June 2006. The question was if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Torpoint with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded on 8 June 2077. Considering the 51 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.