Exminster leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Exminster will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Exminster with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Exminster can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Exminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Jackson, came very near to the eighty-year threshold with the lease on his two bedroom apartment in Exminster. Having purchased his property two decades ago, the lease term was of no concern. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Jackson was able to extend his lease just in the nick of time in May. Jackson and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £950.
In 2011 we were called by Mr Kai Thompson who, having bought a purpose-built apartment in Exminster in April 2012. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Exminster with a long lease were valued about £203,200. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed in 2087. Considering the 61 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of legals.
In 2014 we were phoned by Dr K Watson who, having acquired a studio apartment in Exminster in January 2002. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar properties in Exminster with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded on 21 May 2098. Given that there were 72 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.