Why you should commence your Torrington lease extension

Top reasons for lease extension now:

A Torrington leasehold property depreciates with the years remaining on the lease.

Torrington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Torrington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Torrington you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Torrington property with a lease extension is almost the same value as a freehold

Leasehold residencies in Torrington with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may not grant a mortgage on a short lease

Lending institutions have set criteria when lending funds secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes below a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than seventy years suitable security. As well as impacting your ability to sell, it is also relevant where you are seeking to remortgage your Torrington property.

Why use us for your lease extension in Torrington?

Retaining our service gives you enhanced control over the value of your Torrington leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Torrington Lease Extension Case Studies:

Ashleigh, Torrington, Devon,

Off the back of protracted discussions with the landlord of her studio apartment in Torrington, Ashleigh initiated the lease extension process just as the lease was nearing the crucial eighty-year deadline. The transaction was finalised in March 2008. The freeholder’s fees were kept to an absolute minimum.

Torrington case:

In 2010 we were called by Mrs Jessica González who, having completed a purpose-built apartment in Torrington in April 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Torrington with an extended lease were in the region of £260,000. The average ground rent payable was £50 billed per annum. The lease terminated on 9 September 2098. Considering the 72 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.

Torrington case:

Mrs I Hernández took over the lease of a one bedroom flat in Torrington in October 2006. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar homes in Torrington with an extended lease were valued about £261,600. The average amount of ground rent was £60 collected every twelve months. The lease ended on 8 September 2078. Given that there were 52 years unexpired we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including legals.