There is no doubt about it a leasehold property in Henllan is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Most flat owners in Henllan will qualify for this right; that being said a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Henllan can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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 dealing with 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 2014 Tyler, started to get close to the 80-year mark with the lease on his first floor flat in Henllan. In buying his property two decades ago, the unexpired term was of no bearing. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Tyler extended the lease just ahead of time in July. Tyler and the freeholder via the management company ultimately agreed on an amount of £5,500 . If the lease had descended below 80 years, the amount would have become more costly by a minimum £1,050.
Last Winter we were e-mailed by Mr and Mrs. V Campbell , who completed a one bedroom flat in Henllan in May 2005. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical premises in Henllan with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 billed quarterly. The lease ran out in 2091. Taking into account 66 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Mr and Mrs. W Simon owned a studio apartment in Henllan in March 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Similar properties in Henllan with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease terminated on 20 October 2102. Having 77 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.