Torquay leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Torquay will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Torquay with over 100 years left 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
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 wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Charlie was the the leasehold proprietor of a conversion apartment in Torquay being sold with a lease of a few days over 61 years outstanding. Charlie on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. K Bell owned a basement apartment in Torquay in January 2009. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar flats in Torquay with an extended lease were worth £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated on 24 March 2095. Given that there were 69 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
In 2013 we were called by Mr and Mrs. Y Lefebvre who, having owned a one bedroom flat in Torquay in May 2008. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar flats in Torquay with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced monthly. The lease lapsed on 20 July 2106. Having 80 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.