The nearer a domestic lease in Exton gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in Exton will qualify for this right; however a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Exton with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 landlord 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 experience and the close ties they enjoy with Exton valuers.
Max owned a 2 bedroom flat in Exton being sold with a lease of a little over 72 years outstanding. Max informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2013 we were phoned by Mr and Mrs. H Allen who, having owned a garden flat in Exton in September 2012. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Exton with a long lease were in the region of £285,000. The average ground rent payable was £45 billed quarterly. The lease came to a finish in 2097. Having 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
Last Autumn we were approach by Ms I Ward , who purchased a basement flat in Exton in January 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Exton with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 collected per annum. The lease end date was on 5 January 2086. Considering the 60 years left we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including costs.