Exminster leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Exminster tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Exminster you really ought to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Exminster leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Exminster with in excess of 100 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 situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Exminster lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Adam owned a high value apartment in Exminster on the market with a lease of a little over 59 years remaining. Adam on an informal basis approached his freeholder 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 an increased rent to £50 annually. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Last Winter we were called by Mr and Mrs. S Collins , who purchased a one bedroom apartment in Exminster in January 2003. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar flats in Exminster with a long lease were worth £235,200. The mid-range amount of ground rent was £45 collected yearly. The lease termination date was in 2091. Having 66 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Winter we were contacted by Ms Louise Petit , who moved into a basement apartment in Exminster in August 1996. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable premises in Exminster with a long lease were valued about £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated on 7 May 2102. Given that there were 77 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.