Exmouth residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Exmouth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the freeholder of her two bedroom apartment in Exmouth, Rosie commenced the lease extension process as the eighty year deadline was rapidly coming. The lease extension completed in January 2006. The landlord’s costs were negotiated to approximately 500 pounds.
Last June we were e-mailed by Mr and Mrs. I Rivera , who was assigned a lease of a newly refurbished apartment in Exmouth in September 1996. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Exmouth with an extended lease were worth £246,800. The average ground rent payable was £60 billed quarterly. The lease ran out in 2075. Having 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 plus fees.
Mrs O Leroy moved into a studio apartment in Exmouth in March 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Exmouth with a long lease were in the region of £208,200. The average amount of ground rent was £65 collected monthly. The lease expired on 10 May 2086. Having 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.