The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Henley On Thames have the right to extend the lease for an additional ninety years under legislation. Please think carefully before delaying your Henley On Thames lease extension. Putting off the costs today simply escalates the price you will ultimately have to pay for a lease extension.
Leasehold properties in Henley On Thames with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Henley On Thames 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 conveyancer we work with provide it.
Arthur was the the leasehold owner of a high value flat in Henley On Thames on the market with a lease of fraction over 72 years left. Arthur on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were called by Mr Eli Thomas who, having completed a garden flat in Henley On Thames in September 2009. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar properties in Henley On Thames with a long lease were valued around £267,600. The mid-range ground rent payable was £65 billed per annum. The lease expiry date was in 2092. Given that there were 67 years unexpired we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of expenses.
In 2010 we were e-mailed by Dr K Petit who, having completed a one bedroom apartment in Henley On Thames in November 2012. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical premises in Henley On Thames with a long lease were worth £206,200. The average amount of ground rent was £60 billed every twelve months. The lease expiry date was on 24 September 2081. Given that there were 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.