For those whose Honiton home is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold residencies 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| Skipton Building Society |
The conveyancers that we work with procure 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.
Oliver owned a studio flat in Honiton on the market with a lease of fraction over 61 years left. Oliver informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. V Petit owned a basement flat in Honiton in May 2011. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable flats in Honiton with an extended lease were worth £275,000. The average ground rent payable was £45 collected per annum. The lease came to a finish in 2095. Given that there were 69 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
Last month we were called by Dr O Jones , who purchased a newly refurbished apartment in Honiton in October 2008. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative residencies in Honiton with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease ran out on 18 October 2084. Taking into account 58 years outstanding we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.