With a long leasehold premises in Exton, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Exton with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Exton,the lease extension solicitors 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 Exton valuers.
Subsequent to lengthy discussions with the freeholder of her two bedroom flat in Exton, Morgan initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was finalised in August 2006. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were called by Ms Shannon Moreau who, having was assigned a lease of a ground floor apartment in Exton in October 1997. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Exton with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed in 2095. Given that there were 69 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
In 2009 we were phoned by Mr and Mrs. W Harris who, having purchased a first floor apartment in Exton in April 2011. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Exton with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded in 2084. Given that there were 58 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.