Chances are that if you own a flat in Tavistock you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tavistock can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Tavistock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Mason, came very close to the eighty-year threshold with the lease on his first floor apartment in Tavistock. Having purchased his property 18 years previously, the length of the lease was of minimal concern. Luckily, he became aware that he needed to take action soon on Extending the lease. Mason was able to extend his lease at the eleventh hour in July. Mason and the freeholder via the managing agents in the end settled on a premium of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £925.
Last Summer we were called by Mr and Mrs. M Martin , who took over the lease of a basement flat in Tavistock in July 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Tavistock with a long lease were valued about £270,000. The average ground rent payable was £55 billed annually. The lease end date was in 2099. Taking into account 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Last Spring we were approach by Ms A Bertrand , who bought a one bedroom flat in Tavistock in October 1998. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar premises in Tavistock with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected monthly. The lease elapsed on 1 August 2079. Given that there were 54 years left we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.