Chances are that where you own a flat in Bovey Tracey you actually own a long leasehold interest over your property
Leasehold residencies in Bovey Tracey with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Bovey Tracey,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bovey Tracey valuers.
After protracted correspondence with the landlord of her garden apartment in Bovey Tracey, Lydia started the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in June 2007. The landlord’s costs were kept to an absolute minimum.
Last August we were called by Mr and Mrs. Y Michel , who moved into a purpose-built flat in Bovey Tracey in May 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Bovey Tracey with 100 year plus lease were valued about £264,000. The average ground rent payable was £60 invoiced annually. The lease finished on 13 March 2079. Considering the 53 years unexpired we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.
In 2010 we were contacted by Dr Nathaniel Evans who, having acquired a purpose-built apartment in Bovey Tracey in August 2010. 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. Similar premises in Bovey Tracey with a long lease were valued around £220,400. The average ground rent payable was £45 invoiced per annum. The lease ended on 5 October 2090. Given that there were 64 years left we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.