The nearer a residential lease in Bovey Tracey gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining 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 without delay. The majority of flat owners in Bovey Tracey will qualify for this right; however 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 not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 undertake 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 lawyer we work with provide it.
Trailing lengthy correspondence with the freeholder of her purpose-built flat in Bovey Tracey, Kayleigh started the lease extension process as the eighty year threshold was quickly nearing. The transaction completed in September 2007. The freeholder’s charges were kept to an absolute minimum.
Last month we were approach by Mrs F Gunderson , who owned a one bedroom flat in Bovey Tracey in January 1997. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative flats in Bovey Tracey with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 7 May 2105. Having 80 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2014 we were approached by Ms J Morgan who, having purchased a basement apartment in Bovey Tracey in September 2008. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative homes in Bovey Tracey with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 billed annually. The lease termination date was in 2085. Taking into account 60 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus professional charges.