As the length of the unexpired term of a Exmouth residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Most flat owners in Exmouth will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Exmouth with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors 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 lawyer we work with provide it.
Finn was the the leasehold owner of a 2 bedroom flat in Exmouth on the market with a lease of just over 61 years outstanding. Finn informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Mr and Mrs. U Martínez took over the lease of a one bedroom flat in Exmouth in March 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar flats in Exmouth with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease lapsed on 4 July 2087. Considering the 62 years left we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.
Last Spring we were called by Mrs S Thompson , who acquired a newly refurbished flat in Exmouth in June 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative premises in Exmouth with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended in 2098. Taking into account 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.