With a long leasehold property in Henfield, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than 80 years left. Residents in Henfield with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has fewer than 80 years remaining, under the current Act the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Henfield with in excess of 100 years outstanding 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide 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 want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Hugo, came perilously close to the eighty-year threshold with the lease on his studio flat in Henfield. Having purchased his property two decades ago, the length of the lease was of minimal importance. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Hugo was able to extend his lease just ahead of time in August. Hugo and the freeholder ultimately agreed on sum of £5,000 . If the lease had gone to less than 80 years, the price would have become more exhorbitant by at least £1,100.
Mr and Mrs. G Harris purchased a newly refurbished apartment in Henfield in August 2008. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Henfield with a long lease were valued around £250,400. The average ground rent payable was £65 invoiced every twelve months. The lease ran out in 2089. Given that there were 64 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including professional charges.
Mrs P Moreau took over the lease of a purpose-built apartment in Henfield in September 2012. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparable flats in Henfield with a long lease were worth £189,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded on 27 September 2078. Considering the 53 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.