With a long leasehold premises in Torrington, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years left. Leasehold owners in Torrington with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| TSB | |
| Virgin |
The lawyers that we work with procure 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 lawyer we work with provide it.
Half a year ago Luca, came very close to the 80-year mark with the lease on his leasehold flat in Torrington. In buying his property 19 years previously, the lease term was of no concern. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Luca extended the lease just ahead of time in January. Luca and the freeholder eventually settled on the final figure of £5,000 . If the lease had slipped below eighty years, the price would have become more exhorbitant by a minimum £1,125.
Last year we were approach by Mrs V Gray , who bought a ground floor flat in Torrington in June 1998. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable properties in Torrington with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated on 8 June 2102. Taking into account 76 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Spring we were called by Dr K Mason , who bought a studio apartment in Torrington in September 2012. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Identical properties in Torrington with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 billed annually. The lease elapsed on 1 March 2082. Taking into account 56 years unexpired we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 plus fees.