Honiton leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual 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 mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a freeholder in Honiton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Honiton valuers.
Theo was the the leasehold proprietor of a high value flat in Honiton on the market with a lease of fraction over 61 years remaining. Theo informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Spring we were e-mailed by Mrs C Michel , who purchased a purpose-built flat in Honiton in June 2002. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Honiton with a long lease were in the region of £171,800. The average ground rent payable was £55 collected per annum. The lease terminated on 17 May 2076. Considering the 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
Dr Lily Hernández bought a purpose-built flat in Honiton in September 2006. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Honiton with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 collected quarterly. The lease ended on 8 January 2096. Considering the 70 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.