Tavistock leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease drops lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Tavistock will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Tavistock with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Ethan owned a conversion flat in Tavistock being sold with a lease of a little over 72 years unexpired. Ethan on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2010 we were e-mailed by Ms Abigail Mitchell who, having purchased a one bedroom apartment in Tavistock in April 1999. The question was if we could estimate the price would be for a 90 year lease extension. Comparative premises in Tavistock with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired on 17 March 2096. Given that there were 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Mr Harvey Leroy bought a studio apartment in Tavistock in January 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Tavistock with a long lease were worth £254,200. The average ground rent payable was £60 billed per annum. The lease terminated on 3 May 2076. Having 51 years left we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 plus costs.