Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Torrington. Clearly, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Torrington have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before putting off your Torrington lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 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 |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Torrington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 9 months of protracted correspondence with the freeholder of her basement apartment in Torrington, Kelsey started the lease extension process as the 80 year threshold was quickly nearing. The lease extension was finalised in April 2006. The landlord’s fees were negotiated to a tad over 700 GBP.
Mr Samuel David was assigned a lease of a one bedroom apartment in Torrington in February 2009. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative residencies in Torrington with a long lease were in the region of £270,000. The average ground rent payable was £55 billed quarterly. The lease lapsed in 2099. Having 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Dr E Cook completed a basement flat in Torrington in September 2002. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar premises in Torrington with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 collected every twelve months. The lease lapsed in 2079. Having 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.