The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Henleaze may extend the lease for an additional ninety years under Leasehold Reform legislation. Please think carefully before delaying your Henleaze lease extension. Shelving that expense now simply increases the amount you will ultimately be required to pay to extend the lease.
Leasehold properties in Henleaze with more than 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
Using our service gives you enhanced control over the value of your Henleaze leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her basement apartment in Henleaze, Kayleigh commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension completed in July 2007. The landlord’s charges were kept to an absolute minimum.
Last Winter we were called by Dr Sebastian Hill , who acquired a purpose-built flat in Henleaze in May 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Henleaze with 100 year plus lease were valued around £233,200. The average amount of ground rent was £60 collected monthly. The lease concluded in 2087. Taking into account 61 years remaining we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including costs.
In 2012 we were contacted by Mr and Mrs. J Reed who, having bought a one bedroom apartment in Henleaze in May 2005. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Henleaze with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 8 March 2076. Considering the 50 years left we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.