Top reasons for Exminster lease extension

Main reasons to commence your Exminster lease extension today:

A Exminster leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold property in Exminster, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Leasehold owners in Exminster with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under eighty years outstanding, under the relevant Act the freeholder can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.

Exminster property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.

Lenders may not grant a mortgage with a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Exminster lease extensions?

The conveyancing solicitors 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 lawyer we work with provide it.

Exminster Lease Extension Example Cases:

Luke, Exminster, Devon,

Luke owned a conversion apartment in Exminster on the market with a lease of fraction over 59 years unexpired. Luke informally spoke with his landlord 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 an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and secured an acceptable deal informally and readily saleable.

Exminster case:

In 2012 we were approached by Mr and Mrs. B Cox who, having completed a ground floor flat in Exminster in January 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Exminster with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out in 2102. Given that there were 76 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.

Exminster case:

Dr Noah Garcia took over the lease of a basement flat in Exminster in July 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable premises in Exminster with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease ran out in 2082. Given that there were 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.