There is no doubt about it a leasehold flat or house in Torrington is a wasting asset as a result of the diminishing lease term. If the lease has, over 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Torrington will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Torrington leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her studio flat in Torrington, Ellie started the lease extension process as the eighty year deadline was quickly advancing. The lease extension completed in April 2007. The freeholder’s charges were negotiated to slightly above 650 GBP.
Ms Alice Mitchell bought a first floor apartment in Torrington in June 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Torrington with a long lease were valued around £255,000. The average ground rent payable was £50 billed every twelve months. The lease came to a finish on 11 January 2095. Having 70 years left we estimated the premium to the landlord for the lease extension to be between £10,500 and £12,000 plus fees.
Mr and Mrs. Y Garcia completed a first floor apartment in Torrington in February 1996. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative properties in Torrington with 100 year plus lease were worth £246,800. The average ground rent payable was £60 invoiced quarterly. The lease finished in 2075. Taking into account 50 years remaining we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including fees.