The market value of Bovey Tracey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than 80 years
Leasehold properties in Bovey Tracey with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Bovey Tracey 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 conveyancing solicitor we work with provide it.
In the wake of eight months of protracted discussions with the landlord of her basement flat in Bovey Tracey, Rachel initiated the lease extension process as the 80 year mark was quickly advancing. The legal work completed in August 2008. The landlord’s fees were kept to an absolute minimum.
Mrs Olivia Martinez owned a recently refurbished apartment in Bovey Tracey in May 2001. The question was if we could approximate the price would be to extend the lease by ninety years. Comparable properties in Bovey Tracey with a long lease were worth £235,200. The mid-range ground rent payable was £45 billed annually. The lease concluded in 2092. Having 66 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last month we were called by Mr and Mrs. F Reed , who owned a first floor apartment in Bovey Tracey in February 1997. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in Bovey Tracey with a long lease were in the region of £275,000. The average ground rent payable was £55 invoiced annually. The lease termination date was on 26 August 2103. Taking into account 77 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.