Henley In Arden 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 the lease gets more expensive. It is the case that most Henley In Arden tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Henley In Arden you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Henley In Arden with in excess of 100 years left 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| 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 Henley In Arden,the lease extension lawyers 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 Henley In Arden valuers.
Following unsuccessful negotiations with the landlord of her one bedroom apartment in Henley In Arden, Amelia commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension completed in May 2013. The landlord’s costs were restricted to less than 600 GBP.
Dr Zoe Roux completed a one bedroom flat in Henley In Arden in September 2010. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Identical premises in Henley In Arden with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded in 2103. Having 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Dr Jake Díaz took over the lease of a first floor apartment in Henley In Arden in February 1995. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative homes in Henley In Arden with a long lease were in the region of £183,600. The average ground rent payable was £65 invoiced monthly. The lease finished in 2083. Considering the 57 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.