Bovey Tracey 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 your lease becomes more expensive. The majority of owners of residential leasehold property in Bovey Tracey enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bovey Tracey you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Bovey Tracey leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alfie was the the leasehold proprietor of a 2 bedroom apartment in Bovey Tracey being marketed with a lease of a few days over fifty eight years unexpired. Alfie informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2012 we were phoned by Mr Max King who, having acquired a studio apartment in Bovey Tracey in October 2008. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Bovey Tracey with an extended lease were valued around £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease ended on 12 August 2102. Considering the 77 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
Last Summer we were called by Dr J Vincent , who owned a ground floor flat in Bovey Tracey in May 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Bovey Tracey with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 collected annually. The lease ended in 2082. Having 57 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.