Exmouth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Exmouth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Exmouth you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Exmouth with more than 100 years unexpired 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Exmouth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Exmouth valuers.
Half a year ago John, came precariously near to the eighty-year threshold with the lease on his basement apartment in Exmouth. In buying his flat 19 years ago, the unexpired term was of no significance. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. John extended the lease just under the wire last January. John and the freeholder eventually agreed on sum of £6,000 . If the lease had descended to less than eighty years, the amount would have escalated by at least £1,025.
Last Summer we were contacted by Mr and Mrs. F Parker , who moved into a purpose-built flat in Exmouth in October 2011. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparative flats in Exmouth with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 collected per annum. The lease ran out on 12 May 2082. Taking into account 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including fees.
Last Winter we were contacted by Dr L Ricardo , who was assigned a lease of a ground floor apartment in Exmouth in June 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Exmouth with 100 year plus lease were valued about £242,600. The average amount of ground rent was £45 collected per annum. The lease expired in 2093. Having 67 years as a residual term we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including fees.