Unfortunately that a Torquay residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Torquay property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Torquay will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Torquay with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Torquay can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 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.
Last October Oscar, started to get near to the 80-year mark with the lease on his studio flat in Torquay. Having purchased his flat 19 years previously, the length of the lease was of little significance. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Oscar extended the lease at the eleventh hour last July. Oscar and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If he failed to meet the deadline, the figure would have increased by a minimum £1,100.
Dr O David took over the lease of a one bedroom apartment in Torquay in August 2007. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Torquay with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish in 2084. Having 59 years left we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
Last Spring we were e-mailed by Mrs Isabella Clarke , who completed a basement apartment in Torquay in May 2005. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative properties in Torquay with a long lease were worth £250,000. The mid-range ground rent payable was £50 billed per annum. The lease elapsed in 2095. Taking into account 70 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.