There is no doubt about it a leasehold flat or house in Torpoint is a wasting asset as a result of the diminishing lease term. Where the lease has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Most flat owners in Torpoint will meet the qualifying criteria; however a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Torpoint with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 get professional help from a conveyancing solicitor and valuer with experience in this area.
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.
Trailing unsuccessful discussions with the landlord of her one bedroom flat in Torpoint, Madeleine initiated the lease extension process as the 80 year deadline was fast nearing. The transaction was concluded in May 2005. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mr E Leroy who, having bought a newly refurbished apartment in Torpoint in August 2011. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Torpoint with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 collected quarterly. The lease expired on 26 July 2103. Considering the 78 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
In 2011 we were phoned by Ms Tia Nelson who, having was assigned a lease of a recently refurbished flat in Torpoint in April 2007. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparative flats in Torpoint with an extended lease were valued around £267,600. The average ground rent payable was £65 invoiced yearly. The lease lapsed in 2092. Considering the 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of fees.