The market value of a leasehold property in Henley On Thames depends on how long the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded in advance of the 80 year cut off point. Current legislation entitles Henley On Thames qualifying lessees to an additional term of ninety years on top of the existing term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Henley On Thames can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Henley On Thames lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her garden apartment in Henley On Thames, Catherine started the lease extension process just as the lease was approaching the all-important eighty-year mark. The transaction completed in October 2009. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. G Parker purchased a one bedroom flat in Henley On Thames in June 2010. The question was if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Henley On Thames with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease expired on 19 July 2085. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 plus costs.
In 2011 we were contacted by Mr and Mrs. D Brown who, having was assigned a lease of a first floor flat in Henley On Thames in January 2008. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Identical homes in Henley On Thames with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected per annum. The lease lapsed on 4 January 2105. Given that there were 80 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.