Henleaze leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Henleaze residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Henleaze you really ought to investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Henleaze flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Henleaze with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Henleaze,the lease extension solicitors that we work with will always be happy 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.
Last year Benjamin, started to get close to the 80-year mark with the lease on his first floor flat in Henleaze. Having purchased his home two decades ago, the lease term was of little concern. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Benjamin extended the lease just in the nick of time last August. Benjamin and the landlord eventually agreed on the final figure of £6,000 . If he not met the deadline, the figure would have escalated by a minimum £1,075.
In 2011 we were phoned by Mr B Bonnet who, having acquired a purpose-built apartment in Henleaze in September 2005. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical residencies in Henleaze with a long lease were worth £275,000. The mid-range amount of ground rent was £65 collected monthly. The lease expiry date was in 2094. Considering the 68 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Last month we were e-mailed by Mrs M Thomas , who took over the lease of a recently refurbished flat in Henleaze in October 2009. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar residencies in Henleaze with a long lease were valued around £213,600. The average ground rent payable was £60 billed annually. The lease ran out in 2083. Taking into account 57 years left we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.