Henley In Arden leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Henley In Arden will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
Lease extensions in Henley In Arden can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Henley In Arden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the freeholder of her basement apartment in Henley In Arden, Jasmine commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The lease extension completed in May 2014. The freeholder’s costs were kept to an absolute minimum.
Dr Charlotte Garcia completed a purpose-built apartment in Henley In Arden in April 1998. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar homes in Henley In Arden with 100 year plus lease were worth £173,800. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated in 2080. Having 55 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
In 2010 we were phoned by Mr and Mrs. O Cook who, having took over the lease of a one bedroom apartment in Henley In Arden in February 2012. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative residencies in Henley In Arden with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease elapsed on 23 October 2091. Having 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.