Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bovey Tracey. Inevitably, the term of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Bovey Tracey have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Bovey Tracey lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold premises in Bovey Tracey with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 procure 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 conveyancer we work with provide it.
Kyle owned a studio apartment in Bovey Tracey on the market with a lease of a few days over sixty years unexpired. Kyle on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Ms Sophia King moved into a ground floor flat in Bovey Tracey in March 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical flats in Bovey Tracey with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed annually. The lease finished in 2093. Considering the 67 years left we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of expenses.
Last month we were phoned by Mr Austin Young , who owned a recently refurbished flat in Bovey Tracey in March 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Bovey Tracey with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated on 2 November 2104. Having 78 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.