The market value of a leasehold property in Bovey Tracey is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year threshold. Leasehold Reform legislation entitles Bovey Tracey qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Lease extensions in Bovey Tracey can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
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.
Two years ago Blake, started to get near to the 80-year mark with the lease on his one bedroom apartment in Bovey Tracey. In buying his flat 19 years ago, the lease term was of minimal significance. Luckily, he became aware that he would imminently be paying an escalated premium for Extending the lease. Blake was able to extend his lease just under the wire last January. Blake and the landlord eventually settled on an amount of £5,500 . If the lease had dropped below 80 years, the price would have become more costly by at least £1,075.
In 2010 we were e-mailed by Mr and Mrs. T Hernández who, having purchased a studio apartment in Bovey Tracey in July 2005. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Bovey Tracey with a long lease were valued around £246,800. The average ground rent payable was £60 collected quarterly. The lease finished in 2076. Given that there were 50 years outstanding we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 not including legals.
In 2013 we were approached by Ms V Richardson who, having moved into a studio flat in Bovey Tracey in September 2012. The question was if we could approximate the price would be to prolong the lease by an additional years. Similar flats in Bovey Tracey with 100 year plus lease were in the region of £203,200. The average amount of ground rent was £65 invoiced quarterly. The lease end date was on 25 June 2087. Considering the 61 years left we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.