Exminster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Exminster tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Exminster you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Exminster flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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 |
| 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. |
Lease extensions in Exminster can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Exminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Omar, started to get close to the 80-year mark with the lease on his ground floor apartment in Exminster. In buying his flat two decades ago, the unexpired term was of little interest. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Omar arranged for a lease extension at the eleventh hour last May. Omar and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he had missed the deadline, the sum would have increased by at least £1,100.
Dr B Campbell owned a garden apartment in Exminster in February 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Exminster with an extended lease were in the region of £264,000. The average ground rent payable was £60 collected every twelve months. The lease ended on 28 September 2079. Given that there were 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.
Mrs Shannon Martin moved into a garden apartment in Exminster in March 2009. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Exminster with an extended lease were worth £220,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease concluded in 2090. Having 64 years remaining we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of expenses.