Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Honiton. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Honiton have the legal entitlement to extend the lease for an additional 90 years under statute. Do give due attention before delaying your Honiton lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Honiton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her leasehold apartment in Honiton, Anna started the lease extension process just as the lease was nearing the critical 80-year deadline. The lease extension was concluded in September 2015. The freeholder’s charges were negotiated to below 650 pounds.
Last Christmas we were e-mailed by Mr and Mrs. C Cooper , who moved into a one bedroom flat in Honiton in January 2000. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar residencies in Honiton with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 collected per annum. The lease elapsed in 2079. Considering the 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Last April we were called by Ms Charlotte Jackson , who owned a studio apartment in Honiton in November 2005. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative properties in Honiton with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed on 6 July 2099. Considering the 73 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.