The re-sale value of a leasehold property in Honiton depends on how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed ahead of the eighty year threshold. Statute entitles Honiton qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Honiton with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
Engaging our service gives you enhanced control over the value of your Honiton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a 2 bedroom flat in Honiton on the market with a lease of a little over 61 years left. Thomas informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Summer we were e-mailed by Dr Isaac Bell , who acquired a one bedroom apartment in Honiton in February 2004. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative residencies in Honiton with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease lapsed on 6 October 2103. Given that there were 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
In 2012 we were phoned by Dr Jade Roberts who, having moved into a studio apartment in Honiton in July 2001. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Honiton with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 invoiced annually. The lease expiry date was on 8 March 2092. Having 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of fees.