Torquay leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Torquay tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Torquay you must investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Torquay flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
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 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; |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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. |
Engaging 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 conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Max, started to get close to the eighty-year mark with the lease on his garden apartment in Torquay. Having bought his property two decades ago, the length of the lease was of no concern. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Max extended the lease just under the wire in September. Max and the landlord ultimately settled on a premium of £5,000 . If he had missed the deadline, the sum would have escalated by at least £975.
Dr L Díaz was assigned a lease of a purpose-built flat in Torquay in January 2009. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Torquay with a long lease were worth £168,800. The average amount of ground rent was £60 invoiced monthly. The lease expiry date was on 28 January 2080. Taking into account 55 years outstanding we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus legals.
Dr T Campbell took over the lease of a studio apartment in Torquay in February 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Torquay with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 billed yearly. The lease expiry date was in 2091. Given that there were 66 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.