There is no doubt about it a leasehold flat or house in Bovey Tracey is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Bovey Tracey will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Bovey Tracey with over 100 years left 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bovey Tracey can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience 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.
Trailing protracted correspondence with the freeholder of her leasehold flat in Bovey Tracey, Jasmine initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was concluded in July 2007. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were phoned by Dr Leon Hill , who acquired a first floor flat in Bovey Tracey in October 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Bovey Tracey with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 collected annually. The lease concluded in 2085. Having 60 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including professional charges.
Last Spring we were phoned by Mr and Mrs. B Simon , who bought a first floor apartment in Bovey Tracey in July 1999. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative flats in Bovey Tracey with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced monthly. The lease end date was in 2096. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.