The market value of a leasehold property in Torquay is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year cut off point. Current legislation entitles Torquay qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Lease extensions in Torquay can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 procuring Torquay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the landlord of her two bedroom apartment in Torquay, Alisha initiated the lease extension process as the 80 year deadline was quickly coming. The transaction completed in September 2007. The landlord’s costs were negotiated to less than 550 GBP.
In 2010 we were called by Mr and Mrs. L Sharif who, having completed a studio flat in Torquay in July 2008. The question was if we could estimate the price would be to extend the lease by a further 90 years. Identical residencies in Torquay with a long lease were valued around £255,000. The average amount of ground rent was £50 invoiced yearly. The lease lapsed on 25 February 2097. Taking into account 71 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last Autumn we were e-mailed by Dr R Rose , who took over the lease of a ground floor flat in Torquay in June 2000. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Torquay with 100 year plus lease were worth £254,200. The average ground rent payable was £60 invoiced every twelve months. The lease finished in 2077. Taking into account 51 years unexpired we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of legals.