With a domestic leasehold premises in Torrington, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years left. Anyone in Torrington with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Torrington can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Torrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her two bedroom apartment in Torrington, Robyn initiated the lease extension process as the 80 year mark was rapidly coming. The lease extension was concluded in May 2015. The freeholder’s costs were kept to an absolute minimum.
Mrs Jennifer Miller moved into a one bedroom flat in Torrington in November 2005. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable properties in Torrington with a long lease were worth £210,600. The mid-range ground rent payable was £45 collected monthly. The lease expired in 2088. Taking into account 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus costs.
In 2009 we were e-mailed by Mr J Smith who, having completed a basement apartment in Torrington in March 2004. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar flats in Torrington with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish in 2099. Given that there were 73 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.