The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Torrington have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Torrington lease extension. Postponing the costs today simply escalates the amount you will eventually be required to pay for a lease extension.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Torrington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Torrington valuers.
After unsuccessful negotiations with the freeholder of her purpose-built apartment in Torrington, Sophie commenced the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work was concluded in August 2015. The landlord’s charges were restricted to about 650 GBP.
Last Winter we were e-mailed by Mr K Ricardo , who was assigned a lease of a first floor apartment in Torrington in April 1995. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical flats in Torrington with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 20 May 2103. Considering the 78 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
Last Winter we were called by Dr K Adams , who moved into a purpose-built apartment in Torrington in May 2007. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Torrington with an extended lease were valued around £191,000. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated in 2083. Having 58 years outstanding we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including fees.