Top reasons for Exminster lease extension

Main reasons to start your Exminster lease extension today:

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

Exminster leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Leasehold owners in Exminster will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.

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

It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not finance a property on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Exminster?

Retaining our service gives you increased control over the value of your Exminster leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Exminster Lease Extension Example Cases:

Eleanor, Exminster, Devon,

Off the back of unsuccessful correspondence with the landlord of her studio flat in Exminster, Eleanor commenced the lease extension process as the eighty year mark was fast advancing. The legal work was finalised in November 2008. The landlord’s fees were kept to an absolute minimum.

Exminster case:

In 2011 we were contacted by Mr and Mrs. F Roberts who, having acquired a garden apartment in Exminster in April 2012. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical residencies in Exminster with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished on 16 November 2098. Given that there were 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.

Exminster case:

Last Summer we were contacted by Mr and Mrs. Y Bell , who owned a first floor apartment in Exminster in September 2011. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable properties in Exminster with 100 year plus lease were worth £256,600. The average ground rent payable was £60 collected annually. The lease ended on 23 February 2078. Taking into account 52 years remaining we approximated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of costs.