With a domestic leasehold property in Exmoor, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Residents in Exmoor with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When a lease has less than eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Exmoor with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations 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 | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Exmoor leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Eliot, came seriously near to the 80-year threshold with the lease on his two bedroom flat in Exmoor. In buying his property two decades ago, the lease term was of little importance. by good luck, he became aware that he needed to take action soon on Extending the lease. Eliot arranged for a lease extension just under the wire in July. Eliot and the freeholder via the managing agents eventually settled on the final figure of £5,000 . If the lease had descended below eighty years, the sum would have gone up by a minimum £1,150.
Dr Aaron Williams owned a first floor apartment in Exmoor in March 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparative flats in Exmoor with an extended lease were in the region of £300,000. The average ground rent payable was £50 invoiced annually. The lease terminated on 23 June 2102. Taking into account 76 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Last month we were e-mailed by Mr and Mrs. G Bertrand , who acquired a studio apartment in Exmoor in March 1996. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Exmoor with a long lease were valued about £252,800. The mid-range amount of ground rent was £65 billed annually. The lease concluded in 2091. Having 65 years remaining we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of expenses.