Exminster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Exminster enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Exminster you would be well advised to check if your lease has between 70 and 90 years remaining. There are good reasons why a Exminster leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service will provide 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 wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months James, came dangerously close to the 80-year threshold with the lease on his two bedroom flat in Exminster. Having purchased his home two decades ago, the length of the lease was of no significance. Fortunately, he became aware that he needed to take action soon on a lease extension. James was able to extend his lease at the eleventh hour last July. James and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he had missed the deadline, the amount would have increased by at least £875.
Mrs O Williams completed a one bedroom apartment in Exminster in July 2011. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar properties in Exminster with 100 year plus lease were valued around £270,000. The average amount of ground rent was £55 billed per annum. The lease ran out on 7 May 2099. Having 75 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last Christmas we were approach by Mr John Bonnet , who purchased a ground floor flat in Exminster in May 1998. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative residencies in Exminster with an extended lease were worth £173,800. The mid-range ground rent payable was £60 billed per annum. The lease elapsed in 2079. Considering the 55 years remaining we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.