The only way is down when it comes to Torrington lease terms. Torrington leaseholds that have a residual term fewer than eighty years will reduce in value at a rapid rate, and the cost to extend your lease will go up.
Leasehold residencies in Torrington with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Torrington,the lease extension experts 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.
In the wake of eight months of unsuccessful discussions with the freeholder of her leasehold flat in Torrington, Shannon commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The legal work was concluded in May 2007. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Dr T Taylor , who was assigned a lease of a first floor apartment in Torrington in April 2003. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable properties in Torrington with an extended lease were valued around £173,800. The average amount of ground rent was £60 billed per annum. The lease terminated in 2080. Considering the 55 years unexpired we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.
In 2014 we were contacted by Dr H Sánchez who, having bought a garden apartment in Torrington in May 1999. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar homes in Torrington with a long lease were valued around £235,200. The average ground rent payable was £45 invoiced quarterly. The lease expired on 7 January 2091. Considering the 66 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.