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. If you are a leasehold owner in Torrington you should see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Torrington flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Torrington with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancers that we work with handle 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.
18 months ago Oscar, came critically close to the eighty-year mark with the lease on his studio flat in Torrington. Having purchased his flat 19 years ago, the unexpired term was of little interest. Fortunately, he became aware that he needed to take action soon on a lease extension. Oscar arranged for a lease extension just under the wire last March. Oscar and the freeholder via the management company in the end agreed on an amount of £5,500 . If the lease had gone below 80 years, the figure would have escalated by a minimum £850.
Last Autumn we were called by Ms S Collins , who moved into a basement apartment in Torrington in May 2012. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Comparative properties in Torrington with an extended lease were valued about £227,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed on 10 June 2091. Taking into account 65 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.
In 2011 we were approached by Mr Jack Wilson who, having acquired a garden flat in Torrington in October 2002. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical properties in Torrington with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded on 26 August 2102. Taking into account 76 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.