The closer a domestic lease in Bovey Tracey nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Most flat owners in Bovey Tracey will qualify for this right; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 procure professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with 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.
In recent months Teddy, started to get close to the 80-year threshold with the lease on his two bedroom flat in Bovey Tracey. Having purchased his property two decades ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Teddy was able to extend his lease just ahead of time in August. Teddy and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had gone below 80 years, the price would have increased by a minimum £875.
Ms Rebecca Khan bought a ground floor flat in Bovey Tracey in March 2005. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Similar properties in Bovey Tracey with 100 year plus lease were valued around £203,200. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2086. Taking into account 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.
Last Summer we were contacted by Dr Ollie Taylor , who owned a one bedroom apartment in Bovey Tracey in September 2006. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar residencies in Bovey Tracey with a long lease were worth £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease came to a finish in 2097. Having 72 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.