Chances are that if you own a flat in Henllan you actually own a long leasehold interest over your property
Leasehold premises in Henllan with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| 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. |
Lease extensions in Henllan can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 Henllan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Andrew, came dangerously near to the eighty-year threshold with the lease on his one bedroom apartment in Henllan. Having bought his property two decades ago, the length of the lease was of no interest. Fortunately, he recognised he would soon be paying an inflated amount for a lease extension. Andrew was able to extend his lease at the eleventh hour last April. Andrew and the landlord ultimately agreed on the final figure of £5,000 . If the lease had dipped lower than 80 years, the amount would have gone up by a minimum £925.
Mr and Mrs. V Lambert moved into a one bedroom flat in Henllan in September 2010. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar properties in Henllan with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired on 7 May 2098. Having 73 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2013 we were phoned by Mr and Mrs. K Brown who, having acquired a one bedroom flat in Henllan in September 1999. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable properties in Henllan with a long lease were valued about £264,000. The mid-range amount of ground rent was £60 collected annually. The lease ran out on 10 July 2078. Having 53 years left we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of costs.