Bovey Tracey leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bovey Tracey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bovey Tracey you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Bovey Tracey with over one hundred years outstanding 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Bovey Tracey leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her first floor apartment in Bovey Tracey, Louise commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in October 2007. The landlord’s costs were restricted to under 700 GBP.
Last Winter we were e-mailed by Mr Noah Watson , who purchased a recently refurbished flat in Bovey Tracey in April 2008. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Bovey Tracey with 100 year plus lease were valued around £225,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease concluded on 10 October 2089. Considering the 64 years left we approximated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including professional charges.
In 2010 we were e-mailed by Mr and Mrs. A Brooks who, having owned a ground floor apartment in Bovey Tracey in September 2005. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable premises in Bovey Tracey with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease ran out in 2100. Having 75 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.