Henlow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Henlow enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Henlow you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Henlow with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Using our service gives you better control over the value of your Henlow leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eliot was the the leasehold proprietor of a high value flat in Henlow on the market with a lease of a little over 72 years unexpired. Eliot on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were phoned by Mr E Ricardo who, having bought a purpose-built flat in Henlow in June 2003. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical residencies in Henlow with 100 year plus lease were worth £181,600. The average ground rent payable was £55 billed quarterly. The lease elapsed on 8 November 2077. Given that there were 52 years unexpired we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including fees.
In 2012 we were e-mailed by Dr O Evans who, having acquired a garden flat in Henlow in August 1997. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar properties in Henlow with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed on 17 February 2097. Taking into account 72 years remaining we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.