Bovey Tracey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Bovey Tracey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bovey Tracey you would be well advised to see if your lease has between 70 and 90 years remaining. There are good reasons why a Bovey Tracey flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Bovey Tracey with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
|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.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|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.
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Lease extensions in Bovey Tracey can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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.
Following unsuccessful correspondence with the landlord of her leasehold apartment in Bovey Tracey, Natasha commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction completed in October 2005. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Mr A Green , who moved into a ground floor flat in Bovey Tracey in June 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Bovey Tracey with an extended lease were worth £245,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated in 2091. Having 68 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Dr W Khan acquired a purpose-built apartment in Bovey Tracey in November 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Bovey Tracey with an extended lease were valued about £285,000. The average ground rent payable was £55 collected yearly. The lease concluded in 2102. Given that there were 79 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.