Exton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Exton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Exton you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| TSB | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Exton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Exton valuers.
Two years ago Ollie, came dangerously near to the 80-year mark with the lease on his basement flat in Exton. Having purchased his property 18 years previously, the length of the lease was of no bearing. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Ollie arranged for a lease extension at the eleventh hour in June. Ollie and the freeholder via the managing agents eventually settled on sum of £5,500 . If the lease had slid below eighty years, the sum would have gone up by a minimum £925.
Dr Daniel Laurent acquired a purpose-built apartment in Exton in November 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Exton with a long lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease finished on 7 November 2102. Taking into account 76 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
In 2012 we were contacted by Mr and Mrs. D Lewis who, having moved into a recently refurbished flat in Exton in October 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Exton with a long lease were worth £257,800. The average amount of ground rent was £65 collected annually. The lease end date was on 21 April 2091. Given that there were 65 years left we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.