With a domestic leasehold property in Torquay, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years remaining. Leasehold owners in Torquay with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Torquay with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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 | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
| 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. |
Lease extensions in Torquay can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 a wealth of experience dealing with Torquay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan was the the leasehold proprietor of a 2 bedroom apartment in Torquay on the market with a lease of a few days over 59 years left. Ryan informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2010 we were e-mailed by Dr Michael Mitchell who, having bought a studio flat in Torquay in May 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Torquay with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease elapsed on 2 August 2099. Considering the 74 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
In 2012 we were contacted by Mrs Hollie Martínez who, having acquired a one bedroom flat in Torquay in January 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Torquay with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 billed annually. The lease finished on 13 March 2079. Having 54 years outstanding we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including expenses.