On the balance of probabilities if you own a flat in Honiton you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Honiton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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.
Subsequent to lengthy correspondence with the landlord of her studio apartment in Honiton, Amy commenced the lease extension process just as her lease was coming close to the crucial 80-year deadline. The legal work completed in January 2007. The landlord’s fees were kept to an absolute minimum.
In 2011 we were phoned by Mrs S Campbell who, having bought a studio apartment in Honiton in January 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Honiton with an extended lease were worth £233,200. The mid-range ground rent payable was £60 billed per annum. The lease termination date was in 2087. Considering the 61 years left we calculated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 plus expenses.
Last Autumn we were e-mailed by Mr and Mrs. S Moore , who owned a one bedroom apartment in Honiton in May 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Honiton with a long lease were in the region of £171,800. The average amount of ground rent was £55 collected every twelve months. The lease finished in 2076. Taking into account 50 years as a residual term we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of costs.