When it comes to long leasehold property in Exminster, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Leasehold owners in Exminster with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years left, under the relevant statute the landlord can calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Exminster with in excess of one hundred years outstanding 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Exminster leasehold, as your property will be more valuable and saleable in terms of 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.
Thomas was the the leasehold owner of a conversion apartment in Exminster being marketed with a lease of just over 72 years unexpired. Thomas informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last Summer we were contacted by Mr and Mrs. R Adams , who took over the lease of a one bedroom flat in Exminster in May 2007. The question was if we could estimate the price would be to prolong the lease by an additional years. Similar premises in Exminster with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 collected annually. The lease end date was on 24 July 2093. Having 68 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2013 we were phoned by Mrs W Johnson who, having was assigned a lease of a garden flat in Exminster in May 2009. The question was if we could estimate the price would be for a ninety year lease extension. Comparative homes in Exminster with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out on 28 January 2104. Having 79 years remaining we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.