There is no doubt about it a leasehold flat or house in Bovey Tracey is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Bovey Tracey will meet the qualifying criteria; that being said a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Bovey Tracey with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Bovey Tracey leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her leasehold flat in Bovey Tracey, Abbie started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work completed in June 2008. The landlord’s charges were kept to an absolute minimum.
Ms Bethan Lee bought a first floor apartment in Bovey Tracey in September 2010. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Bovey Tracey with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 invoiced yearly. The lease ended on 3 August 2081. Considering the 56 years remaining we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of legals.
Ms Jessica Walker took over the lease of a garden flat in Bovey Tracey in June 2012. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar flats in Bovey Tracey with a long lease were in the region of £242,600. The average ground rent payable was £45 invoiced monthly. The lease lapsed on 11 August 2092. Considering the 67 years left we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.