Exton leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. Flat owners in Exton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Exton with in excess of 100 years outstanding 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancers that we work with handle Exton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In 2014 Cameron, came precariously close to the 80-year threshold with the lease on his two bedroom flat in Exton. In buying his home 18 years previously, the lease term was of no bearing. Luckily, he noticed he needed to take action soon on Extending the lease. Cameron extended the lease just in the nick of time in September. Cameron and the freeholder via the management company in the end agreed on the final figure of £5,000 . If the lease had fallen below eighty years, the premium would have increased by a minimum £1,150.
Last Christmas we were phoned by Mr and Mrs. R Ramírez , who owned a one bedroom flat in Exton in July 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Exton with a long lease were in the region of £250,400. The average ground rent payable was £65 collected monthly. The lease elapsed on 11 November 2090. Considering the 64 years left we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including costs.
In 2009 we were e-mailed by Mrs Amy Pérez who, having moved into a first floor flat in Exton in June 2000. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Exton with a long lease were in the region of £189,000. The average ground rent payable was £55 collected every twelve months. The lease concluded on 16 February 2079. Given that there were 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.