With a residential leasehold premises in Exminster, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Exminster with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When a lease has less than eighty years outstanding, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Exminster can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Exminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael owned a 2 bedroom flat in Exminster on the market with a lease of just over sixty years outstanding. Michael informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Ms Shannon King acquired a garden apartment in Exminster in September 2005. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable flats in Exminster with a long lease were worth £210,600. The average ground rent payable was £45 billed yearly. The lease elapsed on 15 October 2088. Having 62 years left we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of expenses.
Mr and Mrs. Y Taylor acquired a one bedroom apartment in Exminster in February 2008. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Exminster with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced quarterly. The lease expired in 2099. Having 73 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.