The re-sale 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 less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that formalities can be finalised in advance of the 80 year cut off point. Current legislation entitles Exmouth qualifying lessees to an additional term of ninety years in addition to the remaining term, at a nominal rent (zero ground rent). 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 accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Exmouth can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Exmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold proprietor of a 2 bedroom apartment in Exmouth on the market with a lease of just over 59 years unexpired. Leon informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and secured satisfactory resolution informally and sell the flat.
Last Winter we were e-mailed by Mr and Mrs. P David , who owned a basement apartment in Exmouth in January 1999. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical homes in Exmouth with an extended lease were in the region of £256,600. The average ground rent payable was £60 collected per annum. The lease end date was on 19 July 2078. Considering the 52 years left we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus legals.
In 2010 we were called by Mrs T Howard who, having completed a one bedroom apartment in Exmouth in January 2001. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical residencies in Exmouth with an extended lease were worth £218,000. The mid-range amount of ground rent was £45 collected yearly. The lease ran out in 2089. Having 63 years left we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including fees.