On the balance of probabilities where you own a flat in Exmouth you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder 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.
Off the back of unsuccessful negotiations with the landlord of her leasehold flat in Exmouth, Aimee started the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction was concluded in August 2007. The freeholder’s costs were negotiated to a tad over 500 GBP.
Dr Bethan Petit completed a garden apartment in Exmouth in August 2012. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Identical homes in Exmouth with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 billed per annum. The lease elapsed in 2076. Considering the 51 years remaining we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus fees.
Mr and Mrs. Y Stewart acquired a purpose-built flat in Exmouth in May 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Exmouth with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated on 16 October 2087. Given that there were 62 years remaining we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including professional charges.