Main reasons to commence your Honiton lease extension

Top reasons for lease extension now:

A Honiton lease depreciates with the years remaining on the lease.

With a residential leasehold property in Honiton, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Leasehold owners in Honiton with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has under 80 years remaining, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.

Honiton property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold property. Some will simply refrain from lending at all once the remaining lease term slips beneath a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than seventy years as acceptable security. In addition to this being important when selling, it is also relevant where you are wanting to refinance your Honiton home.

Why use us for your lease extension in Honiton?

Regardless of whether you are a tenant or a landlord in Honiton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Honiton valuers.

Honiton Lease Extension Example Cases:

Harriet, Honiton, Devon,

Following protracted negotiations with the landlord of her one bedroom apartment in Honiton, Harriet commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension completed in February 2011. The landlord’s costs were negotiated to under 650 GBP.

Honiton case:

In 2010 we were phoned by Dr Oliver Jones who, having owned a one bedroom apartment in Honiton in January 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Honiton with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated on 28 May 2099. Having 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.

Honiton case:

Last year we were phoned by Mr C Thomas , who was assigned a lease of a one bedroom flat in Honiton in June 1996. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar homes in Honiton with a long lease were worth £240,600. The mid-range ground rent payable was £60 invoiced annually. The lease expired on 6 June 2088. Having 62 years remaining we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.