Honiton leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher premium will be payable. Leasehold owners in Honiton will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
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 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 in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset 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. |
Regardless of whether you are a tenant or a landlord in Honiton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Honiton valuers.
Trailing protracted discussions with the landlord of her leasehold flat in Honiton, Emma initiated the lease extension process as the 80 year mark was fast coming. The legal work was finalised in August 2005. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr N Lewis , who completed a purpose-built flat in Honiton in July 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Honiton with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished on 10 November 2092. Having 67 years left we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of professional charges.
In 2014 we were approached by Ms Jennifer Gray who, having moved into a one bedroom apartment in Honiton in September 1995. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Honiton with 100 year plus lease were valued about £206,200. The average amount of ground rent was £55 collected monthly. The lease expired on 22 September 2081. Given that there were 56 years unexpired we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.