Honiton leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Honiton will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Honiton with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Honiton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alfie was the the leasehold proprietor of a high value flat in Honiton being marketed with a lease of fraction over 72 years left. Alfie informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Alfie to exercise his statutory right. Alfie procured expert advice and secured satisfactory resolution informally and readily saleable.
Last Christmas we were contacted by Mr and Mrs. W Díaz , who acquired a first floor flat in Honiton in October 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Honiton with a long lease were valued around £285,000. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2098. Taking into account 72 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Mr and Mrs. F Laurent purchased a basement apartment in Honiton in September 2007. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Similar premises in Honiton with a long lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced annually. The lease elapsed on 12 May 2087. Taking into account 61 years left we estimated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 plus professional charges.