Unfortunately that a Honiton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Honiton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Honiton will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with undertake Honiton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Jake, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Honiton. Having bought his property 19 years previously, the lease term was of no concern. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Jake arranged for a lease extension at the eleventh hour last January. Jake and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If he not met the deadline, the price would have escalated by a minimum £1,050.
In 2012 we were contacted by Dr Nicole Lambert who, having completed a recently refurbished flat in Honiton in June 2001. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Similar residencies in Honiton with 100 year plus lease were worth £257,800. The mid-range ground rent payable was £65 invoiced annually. The lease end date was in 2091. Given that there were 65 years remaining we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.
In 2013 we were called by Mrs Emma Rose who, having bought a basement apartment in Honiton in September 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Honiton with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 16 September 2080. Considering the 54 years left we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus expenses.