With a residential leasehold property in Henleaze, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Anyone in Henleaze with a lease approaching 81 years unexpired should seriously consider extending it without delay. When the lease term has below 80 years remaining, under the relevant Act the landlord can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Henleaze with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Henleaze,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Henleaze valuers.
William owned a studio flat in Henleaze on the market with a lease of a few days over 72 years left. William informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were William to exercise his statutory right. William procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2009 we were called by Dr R Díaz who, having purchased a ground floor flat in Henleaze in April 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar residencies in Henleaze with an extended lease were in the region of £206,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated on 13 November 2081. Given that there were 56 years remaining we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.
Last Autumn we were contacted by Dr Maisie Kelly , who acquired a purpose-built flat in Henleaze in January 2011. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative properties in Henleaze with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 12 October 2101. Given that there were 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.