When it comes to long leasehold property in Henley On Thames, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may 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 gets disproportionately more expensive especially when there are fewer than eighty years remaining. Residents in Henley On Thames with a lease nearing 81 years left should seriously think of extending it sooner than later. When a lease has under eighty years left, under the current statute the landlord can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Henley On Thames,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 experience and the close ties they enjoy with Henley On Thames valuers.
Following lengthy discussions with the freeholder of her basement flat in Henley On Thames, Bethan started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The legal work completed in January 2005. The landlord’s costs were kept to an absolute minimum.
In 2013 we were called by Mrs Victoria Lambert who, having acquired a basement flat in Henley On Thames in January 2001. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Henley On Thames with a long lease were valued around £189,000. The average amount of ground rent was £55 collected annually. The lease concluded on 15 September 2079. Considering the 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.
Dr P François bought a one bedroom apartment in Henley On Thames in March 2004. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Henley On Thames with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed monthly. The lease terminated in 2099. Taking into account 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.