With a long leasehold premises in Henley In Arden, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Henley In Arden with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Henley In Arden with more than 100 years outstanding 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Henley In Arden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Owen owned a studio apartment in Henley In Arden on the market with a lease of a little over fifty eight years left. Owen on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were approached by Mr Austin Roux who, having completed a garden apartment in Henley In Arden in November 1997. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable homes in Henley In Arden with an extended lease were valued about £265,000. The average amount of ground rent was £55 collected quarterly. The lease finished in 2099. Given that there were 74 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last Christmas we were contacted by Mr and Mrs. S Green , who owned a first floor flat in Henley In Arden in January 1996. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Similar properties in Henley In Arden with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 collected per annum. The lease ran out on 1 November 2079. Given that there were 54 years remaining we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.