Chances are that where you own a flat in Torquay you actually own a long leasehold interest over your property
Leasehold premises in Torquay with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| Yorkshire Building Society | 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. |
Using our service gives you increased control over the value of your Torquay leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her leasehold flat in Torquay, Poppy commenced the lease extension process as the 80 year mark was fast nearing. The lease extension was concluded in January 2011. The freeholder’s fees were restricted to slightly above 500 GBP.
Last Summer we were e-mailed by Mrs W Gómez , who took over the lease of a first floor flat in Torquay in June 2003. We are asked if we could approximate the price could be to prolong the lease by ninety years. Similar premises in Torquay with 100 year plus lease were worth £275,000. The average ground rent payable was £55 billed yearly. The lease expiry date was in 2102. Having 77 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
Mr and Mrs. P López took over the lease of a basement flat in Torquay in October 2001. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Torquay with a long lease were worth £183,600. The average ground rent payable was £65 collected per annum. The lease lapsed on 20 November 2082. Considering the 57 years remaining we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.