Honiton leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Honiton will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain 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 lawyer during the process.
Leasehold properties in Honiton with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Using our service will provide you better control over the value of your Honiton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Samuel, started to get near to the eighty-year mark with the lease on his studio apartment in Honiton. In buying his property two decades ago, the length of the lease was of no bearing. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Samuel was able to extend his lease just under the wire last January. Samuel and the freeholder in the end settled on a premium of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,125.
Mr and Mrs. U Anderson owned a ground floor apartment in Honiton in August 1997. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Honiton with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded in 2106. Given that there were 80 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2014 we were called by Mr and Mrs. C Michel who, having completed a ground floor apartment in Honiton in February 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Honiton with an extended lease were in the region of £275,000. The average amount of ground rent was £45 collected every twelve months. The lease lapsed in 2095. Considering the 69 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.