It’s a harsh certainty that a Henfield residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Henfield property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Henfield will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Henfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Leon, came seriously near to the eighty-year mark with the lease on his purpose- built apartment in Henfield. Having purchased his home two decades ago, the unexpired term was of no significance. Luckily, he recognised he needed to take steps soon on Extending the lease. Leon extended the lease just under the wire in April. Leon and the landlord ultimately settled on the final figure of £5,500 . If the lease had descended to less than eighty years, the price would have gone up by at least £1,025.
Dr Jackson Cooper owned a first floor flat in Henfield in July 2007. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar flats in Henfield with a long lease were in the region of £174,200. The average amount of ground rent was £55 billed monthly. The lease ran out in 2077. Considering the 51 years unexpired we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.
In 2013 we were phoned by Mr and Mrs. U Díaz who, having was assigned a lease of a ground floor apartment in Henfield in November 2004. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Henfield with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed on 12 October 2097. Having 71 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.