Exmoor leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Exmoor will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Exmoor,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Exmoor valuers.
Eli owned a studio flat in Exmoor being marketed with a lease of just over 72 years remaining. Eli informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last April we were e-mailed by Mr and Mrs. J Gómez , who completed a purpose-built apartment in Exmoor in October 2010. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Exmoor with a long lease were worth £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease finished on 3 February 2096. Taking into account 71 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Mr and Mrs. J Scott purchased a garden flat in Exmoor in November 2002. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Exmoor with an extended lease were valued about £225,800. The mid-range amount of ground rent was £60 billed monthly. The lease lapsed in 2085. Considering the 60 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £25,700 and £29,600 plus expenses.