As the length of the unexpired term of a Exminster domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Exminster will meet the qualifying criteria; however a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Exminster with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 experience and the close ties they enjoy with Exminster valuers.
Jacob was the the leasehold proprietor of a conversion apartment in Exminster on the market with a lease of fraction over 72 years outstanding. Jacob on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last month we were contacted by Dr Catherine Brooks , who took over the lease of a first floor flat in Exminster in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical flats in Exminster with an extended lease were valued around £218,000. The average amount of ground rent was £45 collected per annum. The lease terminated in 2088. Considering the 63 years remaining we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including expenses.
Ms Ellen Hill owned a studio apartment in Exminster in June 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Exminster with an extended lease were valued around £265,000. The mid-range amount of ground rent was £55 collected annually. The lease expired on 26 November 2099. Having 74 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.