As the the remaining lease term of a Henllys residential lease diminished so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Henllys will qualify for this right; nevertheless a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Henllys with in excess of 100 years remaining 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Henllys,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Henllys valuers.
Last Winter Henry, started to get close to the eighty-year threshold with the lease on his basement apartment in Henllys. Having bought his home 19 years ago, the length of the lease was of little bearing. Luckily, he realised he needed to take action soon on Extending the lease. Henry arranged for a lease extension at the eleventh hour last August. Henry and the freeholder in the end agreed on a premium of £5,000 . If the lease had descended below eighty years, the sum would have become more costly by at least £1,150.
Mrs Niamh Lee owned a ground floor flat in Henllys in April 1995. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical flats in Henllys with a long lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease termination date was in 2092. Considering the 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
In 2013 we were contacted by Dr Emily Morris who, having completed a garden apartment in Henllys in June 2006. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical flats in Henllys with an extended lease were valued around £275,000. The average amount of ground rent was £55 collected annually. The lease terminated in 2103. Taking into account 77 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.