It’s an underpublicised certainty that a Tavistock residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Tavistock property prices.Where your lease has approximately 90 years left, you need to start considering 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 dips below eighty years - otherwise a higher premium will be payable. Most flat owners in Tavistock will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Tavistock with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Tavistock,the lease extension lawyers 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 Tavistock valuers.
Last year Sam, started to get near to the eighty-year mark with the lease on his two bedroom flat in Tavistock. Having bought his property twenty years ago, the lease term was of little interest. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Sam was able to extend his lease at the eleventh hour in May. Sam and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If the lease had fallen to less than eighty years, the amount would have become more exhorbitant by a minimum £1,025.
Last Autumn we were e-mailed by Mr and Mrs. H Mitchell , who was assigned a lease of a basement apartment in Tavistock in October 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Tavistock with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish in 2095. Given that there were 69 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Mr Archie Sánchez took over the lease of a basement flat in Tavistock in September 2004. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar premises in Tavistock with a long lease were valued about £290,000. The average ground rent payable was £60 invoiced yearly. The lease termination date was on 25 September 2106. Given that there were 80 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.