It’s a harsh certainty that a Exminster residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Exminster property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Exminster will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Exminster 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.
In the wake of 9 months of protracted negotiations with the landlord of her leasehold apartment in Exminster, Alice commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The transaction was finalised in October 2008. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. P Phillips took over the lease of a basement flat in Exminster in November 2011. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Similar homes in Exminster with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2080. Having 54 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus costs.
Mr and Mrs. M François bought a garden apartment in Exminster in November 1998. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable properties in Exminster with an extended lease were valued about £227,800. The average amount of ground rent was £45 invoiced every twelve months. The lease ended on 21 March 2091. Taking into account 65 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.