Unfortunately that a Bovey Tracey residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Bovey Tracey property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Bovey Tracey will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Bovey Tracey with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 lawyers that we work with handle 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.
Half a year ago Edward, came precariously close to the 80-year mark with the lease on his garden apartment in Bovey Tracey. Having bought his property two decades ago, the lease term was of little relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Edward was able to extend his lease just under the wire in May. Edward and the landlord who owned the flat above subsequently settled on sum of £5,000 . If the lease had slipped below 80 years, the price would have become more exhorbitant by a minimum £1,100.
Mr and Mrs. V Khan completed a garden flat in Bovey Tracey in June 2002. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar residencies in Bovey Tracey with an extended lease were valued about £270,000. The average ground rent payable was £55 invoiced quarterly. The lease lapsed on 7 May 2101. Considering the 75 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
In 2012 we were phoned by Mr and Mrs. S Johnson who, having bought a studio apartment in Bovey Tracey in April 1996. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Bovey Tracey with a long lease were valued about £168,800. The average ground rent payable was £60 billed monthly. The lease terminated in 2081. Given that there were 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.