As the length of the unexpired term of a Honiton residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Honiton will qualify for this right; nevertheless a lawyer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Lease extensions in Honiton can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Honiton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael was the the leasehold proprietor of a high value flat in Honiton being marketed with a lease of fraction over 59 years outstanding. Michael on an informal basis contacted his freeholder 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 a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were approached by Dr Samantha Campbell who, having bought a purpose-built apartment in Honiton in July 2008. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in Honiton with a long lease were worth £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease finished on 14 February 2080. Considering the 54 years left we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including fees.
Mr and Mrs. A Clarke acquired a studio apartment in Honiton in March 2011. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative premises in Honiton with an extended lease were valued around £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated in 2100. Taking into account 74 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.