Exmouth leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease drops lower than eighty years - otherwise a higher amount will be payable. Flat owners in Exmouth will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Exmouth with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
The conveyancers that we work with procure Exmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Alfie owned a conversion apartment in Exmouth on the market with a lease of just over 59 years remaining. Alfie on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to invoke his statutory right. Alfie procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Winter we were called by Mrs W García , who took over the lease of a one bedroom apartment in Exmouth in August 2012. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Exmouth with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 billed annually. The lease finished in 2086. Given that there were 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus costs.
Last month we were contacted by Ms Melissa Gray , who acquired a studio apartment in Exmouth in November 2012. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative residencies in Exmouth with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 collected yearly. The lease finished on 2 June 2097. Given that there were 71 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.