The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Exmouth can extend the lease for a further ninety years under Leasehold Reform legislation. Please think carefully before delaying your Exmouth lease extension. Shelving the costs today simply escalates the price you will eventually be required to pay to extend the lease.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless 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.
In the wake of 9 months of protracted negotiations with the freeholder of her garden flat in Exmouth, Chelsea initiated the lease extension process as the eighty year deadline was quickly nearing. The legal work was finalised in January 2011. The freeholder’s fees were negotiated to a tad over 700 GBP.
In 2009 we were contacted by Mrs Freya Collins who, having took over the lease of a one bedroom flat in Exmouth in February 2008. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical flats in Exmouth with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected annually. The lease ended in 2104. Given that there were 79 years outstanding we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
In 2013 we were contacted by Mr Aaron Leroy who, having was assigned a lease of a basement flat in Exmouth in January 1999. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative properties in Exmouth with an extended lease were valued about £193,400. The mid-range amount of ground rent was £65 billed annually. The lease termination date was on 15 November 2084. Taking into account 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.