Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Tavistock. Clearly, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Tavistock have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give due attention before putting off your Tavistock lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Tavistock 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.
Two years ago Michael, started to get near to the 80-year threshold with the lease on his first floor flat in Tavistock. Having purchased his flat twenty years previously, the length of the lease was of little importance. Luckily, it dawned on him that he would soon be paying way over the odds for a lease extension. Michael arranged for a lease extension at the eleventh hour in June. Michael and the landlord eventually settled on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,000.
Ms I Cox completed a first floor flat in Tavistock in July 2002. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative flats in Tavistock with a long lease were in the region of £220,400. The average ground rent payable was £45 billed every twelve months. The lease finished on 16 May 2088. Having 64 years remaining we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including expenses.
Mr Blake Martinez owned a first floor apartment in Tavistock in July 2009. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar premises in Tavistock with an extended lease were worth £270,000. The average amount of ground rent was £55 collected monthly. The lease termination date was in 2099. Having 75 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.