Exminster residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Exminster,the lease extension solicitors 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.
Trailing lengthy correspondence with the landlord of her basement apartment in Exminster, Alisha commenced the lease extension process just as the lease was coming close to the crucial eighty-year mark. The lease extension was finalised in October 2014. The freeholder’s fees were restricted to under four hundred pounds.
In 2013 we were called by Ms T Gray who, having moved into a basement apartment in Exminster in June 2010. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative flats in Exminster with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 collected per annum. The lease concluded in 2091. Considering the 65 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
In 2010 we were called by Mrs Molly Bonnet who, having owned a one bedroom flat in Exminster in September 2007. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Exminster with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 billed per annum. The lease terminated on 14 May 2102. Having 76 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.