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 lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless 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 increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Bovey Tracey will meet the qualifying criteria; however a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Bovey Tracey with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service gives you better control over the value of your Bovey Tracey leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Joseph, came perilously near to the eighty-year threshold with the lease on his studio flat in Bovey Tracey. Having purchased his home twenty years previously, the length of the lease was of minimal relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Joseph was able to extend his lease just under the wire last June. Joseph and the landlord subsequently settled on a premium of £5,500 . If the lease had slipped lower than eighty years, the premium would have increased by at least £1,125.
In 2009 we were e-mailed by Mr and Mrs. O Sharif who, having bought a newly refurbished apartment in Bovey Tracey in October 2005. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Bovey Tracey with a long lease were worth £275,000. The average ground rent payable was £55 collected per annum. The lease elapsed on 8 February 2101. Considering the 76 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2011 we were phoned by Mr and Mrs. W Torres who, having bought a basement apartment in Bovey Tracey in January 2003. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparative residencies in Bovey Tracey with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 invoiced per annum. The lease ran out on 21 October 2081. Considering the 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.