The market value of a leasehold property in Exmouth is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that all matters can be concluded well before the 80 year cut off point. Statute enables Exmouth qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Exmouth can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Exmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jacob was the the leasehold proprietor of a 2 bedroom flat in Exmouth on the market with a lease of a few days over fifty eight years outstanding. Jacob on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Winter we were e-mailed by Mr and Mrs. P Harris , who took over the lease of a basement flat in Exmouth in April 2008. The question was if we could estimate the price would be to extend the lease by 90 years. Comparable flats in Exmouth with a long lease were valued around £245,000. The average ground rent payable was £50 billed every twelve months. The lease came to a finish in 2094. Taking into account 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2011 we were e-mailed by Mr and Mrs. H Evans who, having was assigned a lease of a one bedroom flat in Exmouth in June 2005. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative flats in Exmouth with a long lease were in the region of £285,000. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 16 June 2105. Having 79 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.