The closer a domestic lease in Bovey Tracey gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Bovey Tracey will qualify for this right; that being said a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Bovey Tracey with in excess of one hundred years unexpired 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Bovey Tracey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bovey Tracey valuers.
After unsuccessful correspondence with the landlord of her studio flat in Bovey Tracey, Rachel commenced the lease extension process as the eighty year deadline was quickly coming. The transaction was finalised in March 2006. The landlord’s costs were negotiated to approximately four hundred GBP.
Mr and Mrs. O Wilson completed a purpose-built flat in Bovey Tracey in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Bovey Tracey with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 billed yearly. The lease ended on 28 January 2104. Having 78 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2011 we were contacted by Dr M Leroy who, having was assigned a lease of a basement apartment in Bovey Tracey in August 1995. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Bovey Tracey with a long lease were worth £186,000. The mid-range ground rent payable was £65 billed yearly. The lease concluded in 2084. Having 58 years remaining we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of expenses.