With a residential leasehold property in Honiton, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years left. Anyone in Honiton with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years left, under the current Act the landlord can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Honiton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Honiton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the landlord of her basement apartment in Honiton, Ashleigh initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The lease extension completed in October 2012. The freeholder’s costs were restricted to a tad over 650 pounds.
Mr Hugo Hernández acquired a one bedroom flat in Honiton in August 1998. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar homes in Honiton with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 invoiced monthly. The lease termination date was on 7 June 2096. Taking into account 72 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
Last Autumn we were contacted by Mrs G Laurent , who moved into a newly refurbished apartment in Honiton in February 2004. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical residencies in Honiton with a long lease were worth £233,200. The average amount of ground rent was £60 invoiced monthly. The lease terminated on 8 October 2085. Given that there were 61 years unexpired we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including fees.