The nearer a domestic lease in Tavistock gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining 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 primary rational as to why you should consider extending without delay. Most flat owners in Tavistock will qualify for this right; however a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Tavistock with over 100 years left 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you better control over the value of your Tavistock leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Riley was the the leasehold owner of a high value apartment in Tavistock on the market with a lease of fraction over 59 years remaining. Riley informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2011 we were phoned by Mrs Jessica Phillips who, having took over the lease of a purpose-built flat in Tavistock in October 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Tavistock with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease ran out in 2101. Taking into account 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Dr Lewis Harris completed a ground floor flat in Tavistock in October 2011. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative homes in Tavistock with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed on 8 May 2081. Having 56 years left we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus fees.