Exmouth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Exmouth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Exmouth you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Exmouth with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| 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. |
Lease extensions in Exmouth can be a difficult process. We recommend you get 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 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.
In the wake of 6 months of protracted negotiations with the freeholder of her one bedroom apartment in Exmouth, Bethany commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension completed in May 2015. The landlord’s fees were restricted to a tad over 450 pounds.
Last Christmas we were contacted by Mr and Mrs. A David , who acquired a ground floor apartment in Exmouth in July 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Exmouth with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded in 2102. Taking into account 76 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last March we were phoned by Mr and Mrs. L Ricardo , who acquired a one bedroom flat in Exmouth in March 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar residencies in Exmouth with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease ended on 27 July 2082. Considering the 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.