Exminster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Exminster enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Exminster you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Exminster with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Exminster can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Exminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a studio flat in Exminster on the market with a lease of a few days over 72 years outstanding. Connor informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Mr and Mrs. A Thomas who, having bought a studio flat in Exminster in November 2005. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative flats in Exminster with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 18 April 2095. Given that there were 69 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
In 2012 we were approached by Ms Paige Bailey who, having owned a ground floor flat in Exminster in November 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Exminster with an extended lease were valued about £285,000. The average amount of ground rent was £55 invoiced yearly. The lease lapsed in 2106. Taking into account 80 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.