Why you should commence your Exmouth lease extension

Top reasons for lease extension now:

Increase your lease and increase your Exmouth property value

Exmouth 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 the lease gets more expensive. Most owners of residential leasehold property in Exmouth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Exmouth you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lenders will not grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This will be problematic when you wish to market or remortgage your flat as it will be practically unmortgageable. Even though you might not have an imminent intention to sell but when you do your purchaser will need to wait 2 years before being able to exercise the right to a an extension to the lease.

What makes us experts in Exmouth lease extensions?

Regardless of whether you are a tenant or a freeholder in Exmouth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Exmouth valuers.

Exmouth Lease Extension Example Cases:

Leon, Exmouth, Devon,

Leon owned a 2 bedroom apartment in Exmouth on the market with a lease of a few days over sixty years outstanding. Leon informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.

Exmouth case:

Last Spring we were contacted by Ms K Petit , who moved into a first floor flat in Exmouth in September 2000. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative properties in Exmouth with an extended lease were worth £270,000. The average amount of ground rent was £55 collected per annum. The lease ended on 8 February 2101. Taking into account 75 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.

Exmouth case:

Last May we were contacted by Ms Anna Howard , who acquired a purpose-built flat in Exmouth in February 2009. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical residencies in Exmouth with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 billed monthly. The lease ended on 7 September 2081. Taking into account 55 years as a residual term we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.