For anyone whose Henllys home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Henllys with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Henllys leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful discussions with the landlord of her leasehold apartment in Henllys, Amelia initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The legal work was concluded in July 2011. The freeholder’s fees were restricted to below 500 pounds.
Last Autumn we were called by Mr and Mrs. A Fournier , who moved into a purpose-built apartment in Henllys in February 2004. The question was if we could estimate the price would likely be to extend the lease by an additional years. Comparable flats in Henllys with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish on 26 June 2081. Having 56 years unexpired we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of fees.
Dr Charlotte Clark moved into a recently refurbished apartment in Henllys in January 2003. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Henllys with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 billed quarterly. The lease terminated on 11 May 2092. Given that there were 67 years unexpired we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of expenses.