Top reasons for Henllys lease extension

Top reasons for lease extension now:

A Henllys leasehold property depreciates with the years remaining on the lease.

Chances are that where you own a flat in Henllys you actually own a long leasehold interest over your property

Henllys property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Henllys with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not lend with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Henllys lease extensions?

Engaging our service will provide you better control over the value of your Henllys leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Henllys Lease Extension Case Summaries:

Jasper, Henllys, Torfaen,

Jasper was the the leasehold owner of a conversion flat in Henllys on the market with a lease of a little over 61 years unexpired. Jasper informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.

Henllys case:

In 2012 we were phoned by Mrs Rachel Wood who, having took over the lease of a studio flat in Henllys in April 2001. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Henllys with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated in 2093. Considering the 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Henllys case:

Mr and Mrs. E Bell completed a basement apartment in Henllys in November 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Henllys with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease terminated in 2104. Given that there were 79 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.