The only way is down when it comes to Bovey Tracey lease terms. Bovey Tracey properties that have a residual term fewer than eighty years will reduce in value even faster, and the cost to extend your lease will go up.
Leasehold residencies in Bovey Tracey with over one hundred years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bovey Tracey,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bovey Tracey valuers.
14 months ago Andrew, came perilously near to the eighty-year threshold with the lease on his studio apartment in Bovey Tracey. Having bought his property twenty years previously, the lease term was of no bearing. by good luck, he noticed he needed to take steps soon on Extending the lease. Andrew arranged for a lease extension just in the nick of time in July. Andrew and the landlord ultimately agreed on sum of £6,000 . If the lease had gone below eighty years, the figure would have escalated by at least £950.
Last Winter we were phoned by Mr Cameron Young , who completed a studio flat in Bovey Tracey in August 2012. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Bovey Tracey with an extended lease were worth £218,000. The average ground rent payable was £45 invoiced monthly. The lease came to a finish on 22 November 2089. Given that there were 63 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.
Last Spring we were e-mailed by Mr Jayden Lefèvre , who acquired a basement flat in Bovey Tracey in August 1998. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative residencies in Bovey Tracey with a long lease were in the region of £265,000. The average ground rent payable was £50 billed yearly. The lease concluded on 26 June 2100. Taking into account 74 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.