It’s an underpublicised truth 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 not fully appreciated in the early years due to the loss of value being disguised by increases in the Bovey Tracey property prices.Once your lease nears 85ish years, 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 falls under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Bovey Tracey will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society |
The conveyancing solicitors that we work with undertake 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.
In recent months Rory, started to get near to the eighty-year threshold with the lease on his studio flat in Bovey Tracey. In buying his flat twenty years ago, the lease term was of no interest. by good luck, he noticed he needed to take steps soon on Extending the lease. Rory arranged for a lease extension just ahead of time last July. Rory and the freeholder in the end settled on an amount of £5,000 . If the lease had slid to less than 80 years, the amount would have become more costly by at least £1,075.
In 2012 we were phoned by Ms Lydia Mitchell who, having purchased a first floor flat in Bovey Tracey in March 2005. The question was if we could estimate the price would likely be to extend the lease by ninety years. Identical flats in Bovey Tracey with a long lease were valued around £186,000. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed on 16 September 2084. Considering the 58 years outstanding we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus expenses.
Mr and Mrs. M Bailey purchased a one bedroom flat in Bovey Tracey in March 2004. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Bovey Tracey with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended on 26 September 2095. Given that there were 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.