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Main reasons to commence your Torquay lease extension

Top reasons for lease extension now:

Increase your lease and increase your Torquay property value

The re-sale value of a leasehold property in Torquay depends on how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year cut off point. Current legislation entitles Torquay qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not loan monies with a short lease

Most banks have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are deemed to be insufficient security.

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Torquay lease extensions?

The conveyancing solicitors that we work with handle Torquay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Torquay Lease Extension Case Summaries:

Stephanie, Torquay, Devon,

After unsuccessful discussions with the landlord of her two bedroom flat in Torquay, Stephanie started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was concluded in July 2014. The landlord’s fees were restricted to less than 550 pounds.

Torquay case:

Last Summer we were e-mailed by Dr Ryan Simon , who moved into a purpose-built flat in Torquay in November 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical residencies in Torquay with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced quarterly. The lease ran out in 2075. Given that there were 53 years unexpired we approximated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.

Torquay case:

Mr Matthew Anderson moved into a recently refurbished apartment in Torquay in February 1995. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Similar residencies in Torquay with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished on 6 January 2086. Taking into account 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including fees.