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 an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Exmouth lease extension. Putting off that expense today simply increases the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Exmouth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Exmouth valuers.
In 2014 Finley, came seriously close to the 80-year mark with the lease on his basement apartment in Exmouth. Having purchased his flat 18 years ago, the unexpired term was of minimal relevance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Finley extended the lease at the eleventh hour in January. Finley and the freeholder subsequently agreed on a premium of £5,500 . If he not met the deadline, the figure would have gone up by at least £875.
Ms T García owned a ground floor apartment in Exmouth in July 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Exmouth with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 invoiced quarterly. The lease termination date was in 2092. Taking into account 67 years unexpired we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus fees.
Last Summer we were called by Mr F Bell , who completed a studio flat in Exmouth in September 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable homes in Exmouth with a long lease were in the region of £280,000. The average amount of ground rent was £55 collected yearly. The lease lapsed on 3 March 2103. Having 78 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.