It’s a harsh certainty that a Henley In Arden residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Henley In Arden property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay half 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 Most flat owners in Henley In Arden will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Henley In Arden,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Henley In Arden valuers.
Off the back of protracted discussions with the landlord of her one bedroom flat in Henley In Arden, Georgia commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work was concluded in April 2009. The landlord’s fees were negotiated to about five hundred GBP.
In 2010 we were contacted by Mr S Clark who, having purchased a purpose-built apartment in Henley In Arden in March 1996. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Henley In Arden with an extended lease were in the region of £285,000. The average ground rent payable was £55 collected per annum. The lease concluded in 2105. Considering the 79 years remaining we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
Last Autumn we were approach by Ms Louise Alexander , who owned a one bedroom flat in Henley In Arden in February 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Henley In Arden with a long lease were worth £193,400. The average ground rent payable was £65 collected monthly. The lease terminated in 2085. Taking into account 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus costs.