Top reasons for Exminster lease extension

Main reasons to commence your Exminster lease extension today:

Increase your lease and increase your Exminster property value

There is no doubt about it a leasehold property in Exminster is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Exminster will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Exminster property with a lease extension is almost the same value as a freehold

Leasehold properties in Exminster with over 100 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not issue a mortgage with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Exminster lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle 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.

Exminster Lease Extension Example Cases:

Sebastian, Exminster, Devon

Last October Sebastian, came dangerously near to the eighty-year threshold with the lease on his studio apartment in Exminster. In buying his home 18 years ago, the length of the lease was of no interest. Fortunately, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Sebastian extended the lease just ahead of time last April. Sebastian and the freeholder ultimately settled on the final figure of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,075.

Exminster case:

Mr and Mrs. T Bell bought a one bedroom apartment in Exminster in January 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Exminster with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease ran out on 4 October 2082. Given that there were 56 years remaining we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including fees.

Exminster case:

Last Autumn we were approach by Mr and Mrs. B Martinez , who bought a ground floor flat in Exminster in February 2008. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable residencies in Exminster with 100 year plus lease were worth £237,600. The average ground rent payable was £45 billed per annum. The lease came to a finish on 20 July 2093. Having 67 years remaining we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including professional charges.