Tavistock leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Tavistock tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tavistock you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Tavistock with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Leeds Building Society | |
| TSB | |
| Virgin |
The conveyancing solicitors that we work with handle Tavistock 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 lawyer we work with provide it.
Two years ago Samuel, started to get close to the eighty-year mark with the lease on his studio apartment in Tavistock. In buying his flat twenty years ago, the unexpired term was of little concern. Thankfully, he noticed he needed to take action soon on Extending the lease. Samuel extended the lease at the eleventh hour last January. Samuel and the landlord subsequently settled on sum of £6,000 . If the lease had dropped lower than 80 years, the amount would have become more exhorbitant by a minimum £900.
In 2014 we were e-mailed by Dr Lauren Ricardo who, having owned a recently refurbished apartment in Tavistock in January 1998. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable properties in Tavistock with an extended lease were worth £225,400. The average ground rent payable was £45 collected per annum. The lease terminated on 3 September 2090. Considering the 64 years outstanding we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.
In 2012 we were approached by Ms M Wilson who, having purchased a garden apartment in Tavistock in August 2010. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical residencies in Tavistock with a long lease were worth £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease lapsed on 7 June 2101. Considering the 75 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.