Exminster leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Flat owners in Exminster will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Exminster,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Exminster valuers.
In 2014 Liam, came precariously close to the eighty-year threshold with the lease on his purpose- built apartment in Exminster. Having purchased his property two decades ago, the unexpired term was of little concern. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Liam extended the lease just under the wire in March. Liam and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If the lease had slid lower than eighty years, the premium would have escalated by a minimum £1,025.
Ms Mollie Khan purchased a newly refurbished apartment in Exminster in February 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Similar residencies in Exminster with a long lease were worth £285,000. The average ground rent payable was £55 invoiced annually. The lease end date was in 2106. Considering the 80 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2013 we were approached by Dr Henry López who, having acquired a first floor apartment in Exminster in June 2004. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Exminster with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced annually. The lease concluded in 2086. Having 60 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus legals.