The market value of a leasehold property in Bovey Tracey is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised prior to the eighty year threshold. Statute enables Bovey Tracey qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Bovey Tracey can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Bovey Tracey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan was the the leasehold proprietor of a conversion flat in Bovey Tracey being sold with a lease of a little over 72 years outstanding. Ethan on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
Last Autumn we were approach by Mr and Mrs. P Ramírez , who purchased a garden apartment in Bovey Tracey in July 2010. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar premises in Bovey Tracey with 100 year plus lease were valued about £285,000. The average ground rent payable was £55 invoiced monthly. The lease concluded on 18 October 2104. Taking into account 79 years remaining we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Mr and Mrs. W Watson moved into a garden flat in Bovey Tracey in May 2001. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative flats in Bovey Tracey with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 billed annually. The lease termination date was on 20 August 2084. Taking into account 59 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.