The closer a domestic lease in Tavistock gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Tavistock will qualify for this right; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Tavistock with in excess of one hundred years unexpired 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 | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| TSB |
Engaging our service gives you increased control over the value of your Tavistock leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oscar owned a studio flat in Tavistock on the market with a lease of a few days over 61 years unexpired. Oscar informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Summer we were e-mailed by Mr Joshua Nelson , who completed a purpose-built flat in Tavistock in March 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Tavistock with an extended lease were worth £261,600. The average ground rent payable was £60 invoiced yearly. The lease lapsed in 2078. Taking into account 52 years left we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including legals.
Mr and Mrs. N Johnson was assigned a lease of a basement flat in Tavistock in November 2012. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Tavistock with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced annually. The lease lapsed in 2089. Taking into account 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.