There is no doubt about it a leasehold flat or house in Henley On Thames is a wasting asset as a result of the shortening lease. If the lease has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Henley On Thames will qualify for this right; that being said a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Henley On Thames with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord 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.
Last year Cameron, started to get close to the eighty-year mark with the lease on his first floor apartment in Henley On Thames. Having bought his property 18 years previously, the lease term was of minimal importance. Fortunately, he noticed he needed to take steps soon on a lease extension. Cameron extended the lease at the eleventh hour last May. Cameron and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £875.
Ms P Khan moved into a one bedroom apartment in Henley On Thames in January 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Henley On Thames with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 collected monthly. The lease finished in 2104. Having 79 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
In 2009 we were phoned by Mrs Rhiannon David who, having owned a first floor apartment in Henley On Thames in September 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Henley On Thames with an extended lease were valued around £275,000. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish in 2093. Given that there were 68 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.