With a domestic leasehold premises in Exmouth, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Leasehold owners in Exmouth with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When a lease has less than 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Exmouth can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 dealing with Exmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the freeholder of her one bedroom flat in Exmouth, Imogen started the lease extension process as the 80 year deadline was fast approaching. The transaction completed in October 2005. The freeholder’s charges were negotiated to about 600 GBP.
Last Winter we were approach by Mr and Mrs. H Mason , who completed a basement flat in Exmouth in March 2005. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar flats in Exmouth with an extended lease were valued around £191,000. The mid-range amount of ground rent was £65 collected quarterly. The lease ended on 21 June 2083. Considering the 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus fees.
In 2011 we were contacted by Mrs S Dupont who, having acquired a recently refurbished apartment in Exmouth in August 2002. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative properties in Exmouth with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded on 8 June 2094. Considering the 69 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.