When it comes to residential leasehold property in Exmoor, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted 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. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years left. Anyone in Exmoor with a lease nearing 81 years left should seriously think of extending it sooner than later. Once the lease term has under 80 years remaining, under the relevant Act the landlord can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Exmoor with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank |
Regardless of whether you are a tenant or a freeholder in Exmoor,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 experience and the close ties they enjoy with Exmoor valuers.
During the course of the last few months Callum, started to get near to the eighty-year mark with the lease on his basement flat in Exmoor. In buying his flat 18 years ago, the lease term was of little significance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Callum was able to extend his lease just ahead of time last September. Callum and the landlord eventually settled on an amount of £5,500 . If the lease had dipped to less than 80 years, the sum would have increased by a minimum £850.
Dr Riley Hall bought a basement apartment in Exmoor in November 2008. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar properties in Exmoor with a long lease were worth £166,800. The average amount of ground rent was £50 billed quarterly. The lease ran out in 2076. Considering the 50 years unexpired we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.
In 2013 we were e-mailed by Mr and Mrs. Y Stewart who, having was assigned a lease of a one bedroom apartment in Exmoor in September 2007. The question was if we could approximate the price could be for a 90 year lease extension. Identical homes in Exmoor with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected per annum. The lease finished on 5 August 2096. Having 70 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.